Education-focused lending startup Propelld raises $25M in debt

Education-focused lending fintech startup Propelld has raised $25 million in debt for its wholly-owned non-banking financial company (NBFC) Edgro Finance. 

The debt was led by nine lenders, including Credit Saison India Private Limited, AU Small Finance Bank, InCred Financial Services Limited and Northern Arc Capital Limited.

Prior to this, the Bengaluru-based startup raised $35 million in a Series B funding round in February 2022 led by WestBridge Capital and existing investors Stellaris Venture Partner and India Quotient. 

Making students access flexible loan options

Nikunj Agarwal, Head of Debt and Lending Alliance at Propelld, said the raised debt will help make flexible loan options available for more students.

"As Edgro continues to expand its reach and enhance our offerings, we are grateful for the robust support from our financial partners, which enables us to further the mission of democratising education and empowering more students," Agarwal said.

He added that Edgro is actively seeking bank borrowings and co-lending partners to expand the company's mission.

Who are the founders?

Founded in 2019 by IIT Madras graduates Bibhu Prasad Das, Victor Senapaty, and Brijesh Samantaray, Propelld offers education loan financing solutions through Study Now and Pay Later products and Income Sharing Agreements (ISA) via Edgro.

The startup claims it works with more than 2,000 educational Institutes across edtech, K12, universities, schools and upskilling. It has also introduced collateral-free education financing.

Notably, Propelld has an annual disbursal run rate of Rs 1,200 crore and NPAs below 1%.

Multiple lending partnerships

Edgro is a wholly-owned subsidiary of Propelld and commenced operations in October last year.

Propelld has multiple lending partnerships. In addition to Edgro, it has Avanse Financial Services, Aditya Birla Capital, and JM Financial as its digital lending partners.

"The education lending sector holds significant growth potential, especially in tier 2 and tier 3 cities where students face difficulties in securing finances from accredited lenders due to limited access. Others have to resort to high-interest loans from private lenders or by pledging gold, adding to their burden. Edgro, which commenced operations only in July 2023, has raised such a significant amount due to the company’s reliance on the larger mission of democratizing access to education through innovative financial offerings," the startup said.