Propelld, an innovative education-focused lending platform, has secured $25 million in debt funding for its wholly-owned non-banking financial company (NBFC) subsidiary, Edgro. Nine prominent lenders participated in this significant funding round, including Credit Saison India Private Limited, AU Small Finance Bank, InCred Financial Services Limited, and Northern Arc Capital Limited.
The newly acquired funds will enable Edgro to expand its reach and enhance its financial product offerings, particularly in underserved regions. Propelld, founded in 2019 by Bibhu Prasad Das, Victor Senapaty, and Brijesh Samantaray, provides various education financing solutions. These include Study Now and Pay Later options and Income Sharing Agreements (ISA) through its NBFC arm. The company is also known for offering collateral-free education financing, significantly benefiting students from tier II and III cities who often need help to secure loans from traditional lenders.
Edgro commenced operations in July 2023 and is set to leverage this funding to further its mission of making education more accessible. Propelld’s innovative financing solutions are designed to meet the needs of students in smaller cities and towns, where access to credit remains a significant barrier to higher education.
Propelld has raised nearly $40 million from a roster of esteemed investors, including WestBridge Capital, Stellaris Venture Partners, and India Quotient. The company’s last major funding round, which occurred in February 2022, amounted to $35 million. Propelld’s annual loan disbursal run rate has now reached Rs 600 crore, highlighting its growing impact on the education financing sector.
Propelld operates in a competitive landscape, with several other players also making strides in the education financing market. Notable competitors include Leap Finance, Financepeer, GrayQuest, Eduvanz, Auxilo, MPower Financing, and Credenc. These companies have secured significant funding over the past three years, underscoring the growing investor interest in this sector. For instance, Leap Finance raised $75 million in June 2022, while Credenc garnered $25 million from Capital India in July 2021. Eduvanz raised $12 million in December 2022, and GrayQuest and MPower Finance raised $7 million and $150 million respectively in 2023. Auxilo also secured $6 million in debt earlier this year.
With this fresh infusion of capital, Propelld and its NBFC arm, Edgro, are well-positioned to scale their operations and continue to provide crucial financial support to students, ultimately driving greater educational access and opportunities across India.
