Education lending startup Eduvanz has raised Rs 104.5 crore ($12.6 million) as a part of an extended Series B funding round, led by Rethink Education Ventures, a company spokesperson told VCCircle.
The round also saw participation from existing investors Juvo Ventures, Sequoia Capital and Unitus Ventures. This marks the Mumbai-based company’s maiden equity fundraise this year.
As per the filings, Eduvanz has allotted 10 equity shares and 68,373 Series B1 compulsorily convertible cumulative preference shares (CCPS) at an issuance price of Rs 15,283.71 apiece to the said investors.
Following the new proceeds, Sequoia holds a 32.4% stake in Eduvanz while Rethink, Juvo, and Unitus command 5%, 3.50%, and 2% respectively.
Founded by Varun Chopra and Raheel Shah in 2016, Eduvanz is a digital finance company that provides education loans from zero interest for students and skill seekers. The firm claims to have disbursed loans worth Rs 337 crore in FY22.
Meanwhile, the edtech industry, which boomed during the pandemic as teaching moved online, is facing a major funding crunch and moderation in valuations with the reopening of educational institutions. With a focus on conserving costs, several startups have resorted to mass layoffs and cutting discretionary spending.
Be that as it may, the industry is ticking with several new developments including funding, mergers and acquisitions, among other over the recent past.
According to a recent report by Blume Ventures, the last 24 months have been pivotal for the edtech sector, since the Jio revolution that managed to bring online learning to mobile phones in the most remote pockets of the country.
Edtech platform CollegeDekhko announced raising $9 million from existing investor Winter Capital last week.
On the M&A front, several edtech unicorns such as PhysicsWallah are on an acquisition spree over the last one year. PhysicsWallah, after its most recent acquisition of iNeuron, said that it has earmarked $40 million for future acquisitions.
