Propelld Secures $25 Million Debt Funding for Edgro

Education-focused lending platform Propelld has successfully raised $25 million in debt funding for its wholly-owned NBFC subsidiary, Edgro.

This substantial funding has been sourced from nine prominent lenders, including Credit Saison India Private Limited, AU Small Finance Bank, InCred Financial Services Limited, and Northern Arc Capital Limited.

The funds will be utilized to enhance Edgro’s reach and expand its range of offerings. Edgro, which commenced operations in July 2023, focuses on providing education loan financing solutions through innovative products such as Study Now, Pay Later, and Income Sharing Agreements (ISA).

Propelld, through Edgro, also offers collateral-free education financing, targeting students in tier II and III cities who often face difficulties securing finances from traditional lenders.

Founded in 2019 by Bibhu Prasad Das, Victor Senapaty, and Brijesh Samantaray, Propelld has established itself as a key player in the education financing sector.

The platform has previously raised nearly $40 million from investors including WestBridge Capital, Stellaris Venture Partners, and India Quotient. Its last fundraising round, amounting to $35 million, was completed in February 2022.

Propelld reported a significant increase in its operating revenue, which more than doubled to Rs 75 crore in FY23 from Rs 33 crore in FY22. However, the firm’s losses also surged over fourfold to Rs 26.72 crore in FY23 from Rs 5.96 crore in the previous year, according to data from startup intelligence platform TheKredible.

The company competes with several other education financing firms, such as Leap Finance, Financepeer, GrayQuest, Eduvanz, Auxilo, MPower Financing, and Credenc. All these competitors have secured notable funding in the past three years.

Leap Finance raised $75 million in June 2022, Credenc obtained $25 million from Capital India in July 2021, and Eduvanz raised $12 million in December 2022. In 2023, GrayQuest and MPower Finance secured $7 million and $150 million, respectively, while Auxilo raised $6 million in debt earlier this year.

Propelld’s annual loan disbursal run rate stood at Rs 600 crore as of its last funding round, showcasing its robust growth and potential in the education financing market.

The new funding for Edgro is expected to further strengthen its position and facilitate the company’s mission to provide accessible education financing solutions across India.

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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