Leap Finance is looking to finance 1,000 students in the upcoming fall season
The company's technology-enabled platform enables students to apply online and get a financing offer in less than 10 minutes
Leap Finance, a fintech startup for Indian students pursuing international higher education, on Tuesday said it has raised $5.5 million led by venture capital firm Sequoia Capital India Advisors. The round also saw participation from angel investors, including Bhupinder Singh, founder of consumer lending firm InCred; and Kunal Shah, founder of credit card payment startup Cred.
Founded in 2019 by IIT-Kharagpur alumnus Vaibhav Singh and Arnav Kumar, the startup offers loan products and services that help Indian students pursue overseas education. It is currently accepting applications from students starting graduate studies in the US in the upcoming fall season (2020), offering them education loans that cover full study cost coverage with no collateral, at interest rates starting at 8%.
“Indian students make up for 25% of a class in many top graduate programmes in the US. These are smart, hard-working students who got in the best programmes and have a great future ahead. Yet, the education loans they avail of are at interest rates twice as high as their American peers", said Vaibhav Singh, co-founder of Leap Finance.
“This disparity stems from systemic inefficiencies and lack of innovation. We have innovated on multiple dimensions—technology, financial structuring and risk—to bring down the interest rate and improve customer experience," he added.
Presently, the startup supports more than 150 American schools, and is looking to finance 1,000 students in the upcoming fall season.