New Delhi, Feb. 10 -- Education-focused non-banking finance company Eduvanz Financing has raised around Rs 26 crore (about $3 million) in a bridge funding round from its existing venture capital investors.
Juvo Ventures and Capria Ventures co-led the round while Peak XV Partners and Unitus Ventures pitched in, too. Capria and Juvo Ventures contributed nearly Rs 9 crore each while Peak XV and Unitus Ventures invested around Rs 4 crore each, Entrackr reported, citing Eduvanz's filings with the Registrar of Companies.
According to the filings, the company will use the proceeds for working capital, product development, and marketing initiatives.
In 2022, the company had raised nearly Rs 105 crore (around $13 million) in an extended Series B round, led by Rethink Education Ventures. Juvo Ventures, Peak XV, and Unitus had also participated in the round. These funds were raised at a pre-money valuation of around $90 million, or about Rs 788 crore, data from VCCEdge showed.
The latest funding comes after the company posted a net loss of over Rs 40 crore for the financial year ended March 2024 and its assets under management shrank to Rs 430 crore from Rs 569 crore a year ago. VCCircle previously reported that the company's loan book contracted as it needed to adapt to the Reserve Bank of India's digital lending guidelines and default loss guarantee regulations, which were implemented in June 2023.
Founded by Varun Chopra, Raheel Shah and Parth Upadhyay in 2016, the non-bank lender provides unsecured loans to students and working professionals. The company operates a business-to-business customer model, wherein it partners with educational institutes to provide loans through an online process. The company has partnered with over 900 educational institutions.
The company has principal and profit protection measures in place with select educational institutions. Nearly one-fifth of the loans are secured through these arrangements.
Published by HT Digital Content Services with permission from VC Circle.