Mumbai: Eduvanz Financing Pvt. Ltd, an education technology start-up that provides loans for skill development to students, has raised $500,000 in a round of funding led by Blinc Advisors, a venture capital fund, a senior executive at the start-up said.
Founded in 2016, Eduvanz works with training partners, corporates and certification providers spanning more than 16 industry sectors to increase their enrolments by providing innovative financial solutions to students and skill-seekers.
The Mumbai-based financing company uses proprietary artificial intelligence (AI) based algorithms and predictive analytics to collate financial and socio-economic data from conventional and non-conventional sources to make lending easier for skill development.
The company aims to utilize the funds for strengthening its AI-based lending technology for loan appraisal and expand its operations across the country.
“We are solving problems that are directly linked with nation building and growth of Indian industry. Over the next four years, more than 200 million Indians will undergo some form of skill training before they enter the workforce. At Eduvanz, our mission is to financially empower every individual to choose the vocation, skills and career of their choice," said Varun Chopra, co-founder of Eduvanz.
Eduvanz has received a licence from the Reserve Bank of India (RBI) for starting its non-banking financial company.
“With this approval from RBI, Eduvanz has moved one step closer to becoming India’s leading lender for vocational courses, on-job training programs and certifications programs," Chopra added.
The lending space has seen several start-ups tap opportunities such as small and medium enterprises (SME) lending, unsecured consumer lending, peer to peer lending and credit rating services.
In August, lending firm Capital Float raised $45 million in a series C round led by Palo Alto-based fin-tech investor Ribbit Capital, with substantial participation from follow-on investors SAIF Partners, Sequoia India and Creation Investments Capital Management.
Lendingkart Technologies Pvt. Ltd, a fintech start-up focused on lending, in September, raised over $10 million from Bertelsmann, Mayfield and others.
Other fintech start-ups that have raised funds recently include ZipLoan, Shubh Loans, Stashfin, LoanMeet and others.