Getty ImagesMUMBAI: Credenc, the digital education loans platform for higher education in India, has raised Rs 17.8 crore ($2.5 million) in seed funding, led by Omidyar Network India. Other investors who participated in the round include EMVC , Better Capital and IIMK Alumni Fund.
The company plans to use the funds to expand operations to a 1000 colleges across 50 cities over the next two years.
The Delhi-headquartered start-up was founded by Avinash Kumar and Mayank Batheja in 2017, and it works as the digital finance desk of 200+ management colleges across 17 Indian cities. The start-up has approved loans worth Rs 100+ crore ($15 million) as of now and intends to build up a loan book of $500 million over the next five years.
The company claims of receiving over 200 loan requests per day. Its evaluation process uses a proprietary AI model which tracks 15 million data points to predict the future income of students applying for loans.
“Credenc’ differentiated lending model provides financing to deserving students, which helps them access post-secondary education and get meaningful employment. Avinash and Mayank’s solution will help in creating a level playing field for students from the next half billion population by making quality education more accessible. We see this partnership as an opportunity to demonstrate that a highly impactful and profitable business can be built in the large and untapped higher education financing space,” said Sarvesh Kanodia, associate, Omidyar Network India.
The annual spend on college fees in India is Rs 3.5+ lakh crore ($50 billion), of which only 5% is financed by organised lenders. For the USA, this figure stands at more than 60%. Credenc intends to change the segment perception and reduce underwriting risk basis its future employability score, which will help this percentage go up to 15%, as it partners with more than 3,000 colleges in 100+ cities to build an Rs 3,500+ crore loan book in the next five years.
Credenc claims that industry-wide, approval for education loans can take up to two months, whereas Credenc qualifies applications within a fraction of that time.
As per Credenc, 30% of Indian students’ families sell assets to fund their education, while 20% borrow from local money lenders at rates as high as 3% a month. Another 30% give up on a college education.
The startup has mapped 70,000 job roles across 50,000 companies in India and developed a deep understanding of employability in India, to change the status quo. After providing financial support, Credenc works with students and helps them with employability services, handholding applicants as they transition from student to professional life.
The company plans to use the funds to expand operations to a 1000 colleges across 50 cities over the next two years.
The Delhi-headquartered start-up was founded by Avinash Kumar and Mayank Batheja in 2017, and it works as the digital finance desk of 200+ management colleges across 17 Indian cities. The start-up has approved loans worth Rs 100+ crore ($15 million) as of now and intends to build up a loan book of $500 million over the next five years.
The company claims of receiving over 200 loan requests per day. Its evaluation process uses a proprietary AI model which tracks 15 million data points to predict the future income of students applying for loans.
“Credenc’ differentiated lending model provides financing to deserving students, which helps them access post-secondary education and get meaningful employment. Avinash and Mayank’s solution will help in creating a level playing field for students from the next half billion population by making quality education more accessible. We see this partnership as an opportunity to demonstrate that a highly impactful and profitable business can be built in the large and untapped higher education financing space,” said Sarvesh Kanodia, associate, Omidyar Network India.
The annual spend on college fees in India is Rs 3.5+ lakh crore ($50 billion), of which only 5% is financed by organised lenders. For the USA, this figure stands at more than 60%. Credenc intends to change the segment perception and reduce underwriting risk basis its future employability score, which will help this percentage go up to 15%, as it partners with more than 3,000 colleges in 100+ cities to build an Rs 3,500+ crore loan book in the next five years.
Credenc claims that industry-wide, approval for education loans can take up to two months, whereas Credenc qualifies applications within a fraction of that time.
As per Credenc, 30% of Indian students’ families sell assets to fund their education, while 20% borrow from local money lenders at rates as high as 3% a month. Another 30% give up on a college education.
The startup has mapped 70,000 job roles across 50,000 companies in India and developed a deep understanding of employability in India, to change the status quo. After providing financial support, Credenc works with students and helps them with employability services, handholding applicants as they transition from student to professional life.
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