Propelld, a leading fintech platform, has secured $25 million in debt financing to fuel the growth of its NBFC subsidiary, Edgro. This strategic investment empowers Edgro to expand its reach and offerings, particularly in tier II and III cities across India.
Edgro: Bridging the Gap in Education Financing
Launched in July 2023, Edgro specifically targets students in underserved regions where traditional financing options are limited. This debt funding allows Edgro to provide flexible and accessible loan solutions, bridging the gap for students seeking higher education.
Propelled by a Consortium of Leading Lenders
The $25 million debt round was facilitated by a renowned consortium of lenders, including Credit Saison India Private Limited, AU Small Finance Bank, InCred Financial Services Limited, and Northern Arc Capital Limited. This diverse group of investors signifies the growing confidence in Propelld’s innovative approach to education financing.
Propelld: A History of Innovation in Education Lending
Founded in 2019 by Bibhu Prasad Das, Victor Senapaty, and Brijesh Samantaray, Propelld has established itself as a frontrunner in the education lending space. The company boasts a comprehensive suite of solutions, including:
- Study Now and Pay Later products
- Income Sharing Agreements (ISAs) through Edgro
- Collateral-free financing options
Propelld’s commitment to innovation is further reflected in its impressive funding history. To date, the company has secured nearly $40 million in equity funding from leading venture capitalists like WestBridge Capital, Stellaris Venture Partners, and India Quotient. Their most recent funding round of $35 million concluded in February 2022, demonstrating continued investor confidence in Propelld’s growth trajectory.
Financial Performance and Market Landscape
As of the last funding round, Propelld reported a promising annual loan disbursal run rate of Rs 600 crore. While operating revenue witnessed a significant increase, jumping from Rs 33 crore in FY22 to Rs 75 crore in FY23, the company’s losses also grew, reflecting investments in market expansion. This trend is common among high-growth startups prioritizing market share acquisition.
Propelld operates in a dynamic and competitive landscape populated by established players like Leap Finance, Financepeer, GrayQuest, Eduvanz, Auxilo, MPower Financing, and Credenc. This competitive environment has witnessed a surge in funding activity in recent years. Leap Finance secured $75 million in June 2022, while Credenc raised $25 million from Capital India in July 2021. Eduvanz, GrayQuest, and MPower Financing also secured significant funding rounds, highlighting the investor appetite for the education lending sector.
Propelled Towards a Brighter Future for Education
With this latest debt financing, Propelld is strategically positioned to capitalize on the growing demand for accessible education financing solutions in India. Edgro’s reach and Propelld’s diverse product portfolio empower students across the country to pursue their educational aspirations. The company’s focus on innovation and financial inclusion makes it a strong contender in the education lending space, and its future growth promises to disrupt the traditional financing landscape in India.
