The lending platform Propelld, which focuses on education, has raised $25 million in debt financing for Edgro, its fully-owned NBFC subsidiary.
Nine lenders, including Credit Saison India Private Limited, AU Small Finance Bank, InCred Financial Services Limited, and Northern Arc Capital Limited, contributed to Edgro’s fundraising efforts.
The business plans to expand its offerings and reach with the help of the funds.
Propelld, which was founded in 2019 by Bibhu Prasad Das, Victor Senapaty, and Brijesh Samantaray, provides financing options for education loans through its Study Now and Pay Later products. Additionally, its NBFC arm provides Income Sharing Agreements (ISA). Additionally, the business offered education financing without collateral.
The platform focuses on tier II and tier III cities where students have trouble obtaining loans from reputable lenders.
Propelld has raised close to $40 million from investors including WestBridge Capital, Stellaris Venture Partners, and India Quotient, whereas Edgro began operations in July 2023. In February 2022, its most recent $35 million fundraising campaign came to fruition.
At the time of the most recent funding round, Propelld’s yearly loan disbursal run rate was Rs 600 crore.
Propelld reported an increase in operating revenue of over two times, from Rs 33 crore in FY22 to Rs 75 crore in FY23. The company’s losses increased by more than 4X to Rs 26.72 crore in FY23 from Rs 5.96 crore the year before, according to the media.
Propelld faces competition from companies such as Credenc, Leap Finance, Financepeer, GrayQuest, Eduvanz, Auxilo, and MPower Financing.
