Propelld Secures $25 Million Debt for Education Lending Subsidiary Edgro

Preeti Bali / 9:01 am / May 20, 2024

Propelld, a Bengaluru-based fintech startup focused on education lending, has secured $25 million in debt financing for its wholly-owned non-banking financial company (NBFC), Edgro Finance. This significant investment highlights the growing importance of providing accessible financial solutions for students pursuing higher education.

Increased Access to Flexible Loan Options

The debt financing, led by a consortium of nine lenders including Credit Saison India Private Limited and AU Small Finance Bank, will empower Edgro to expand its reach and offer a wider range of flexible loan options. Nikunj Agarwal, Head of Debt and Lending Alliance at Propelld, expressed gratitude for the support from their financial partners. “This investment allows us to further our mission of democratizing education and empowering more students,” Agarwal stated. He emphasized Edgro’s ongoing efforts to secure bank borrowings and forge co-lending partnerships to amplify their impact.

Propelld: A Champion for Educational Equity

Founded in 2019 by IIT Madras graduates, Propelld has established itself as a leader in innovative education financing solutions. Their offerings include “Study Now and Pay Later” products and Income Sharing Agreements (ISAs) facilitated through Edgro. The company boasts partnerships with over 2,000 educational institutions across various sectors, including edtech, K12, universities, schools, and upskilling programs. Notably, Propelld has pioneered collateral-free education financing, making education more accessible for students with limited financial resources.

Edgro’s Strong Start and Propelld’s Established Partnerships

Edgro, launched in October 2023, has achieved impressive early success. The subsidiary boasts an annual loan disbursal run rate of Rs 1,200 crore and maintains a low Non-Performing Asset (NPA) ratio below 1%. Propelld leverages a network of established lending partners beyond Edgro, including Avanse Financial Services, Aditya Birla Capital, and JM Financial.

Propelld emphasizes the crucial role of accessible financing in fostering educational equity. “The education lending sector offers immense potential, particularly in tier 2 and tier 3 cities,” the company stated. “Students in these regions often struggle to secure funding from traditional lenders due to limited access. Edgro’s innovative financial offerings address this challenge and aim to alleviate the burden of high-interest loans or pawning valuables for educational pursuits.”

This significant debt financing strengthens Propelld and Edgro’s combined efforts to democratize education in India by providing students with the financial resources they need to achieve their academic goals.


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