Mumbai-based student loan provider Eduvanz is set to raise ₹23 crores in Series A funding from Sequoia’s SCI Investment VI fund, Redwood Trust, Vistra ITCL on behalf of Unitus Seed Fund India II, and QED Innovation Labs.
The startup has already received ₹4 lakhs from Redwood Trust in exchange for 136 pre-series A CCCPS shares. Redwood will be investing ₹12.59 lakhs in total. Sequoia’s SCI Investment VI fund will pour ₹17.83 crores for 59,626 CCCPS, Vistra ITCL will pickup 14,678 shares for ₹4.39 crores and QED Innovation Labs will buy 2,342 shares for ₹70 lakhs.
The startup will allocate 77,067 Series A shares at a face value of ₹100 and a premium of ₹2,891.31 per share.
The startup has not yet revealed the utilization of the funds.
Founded by Varun Chopra, Atul Sashittal, and Raheel Shah in 2016, Eduvanz Financing is an NBFC that offers low interest loans to students including education loans, career loans, and skill development loans.
Using its technology, the startup assigns credit scores to loan-seeking students, based on their social and economic background as well as demographics. The startup has partnered with more than 80 institutes including K-11, ISBM, and Imarticus to offer placement and scholarship support for students.
Eduvanz procured an NBFC license from RBI in 2017, following which it raised ₹3.4 crores from Blinc Advisors. In April 2019, the startup raised ₹14 crores from Unitus Ventures and the Michael and Susan Dell Foundation.
Sequoia has also backed Leap Finance, another student finance startup, founded by Arnav Kumar and Vaibhav Singh in 2019.