May 18, 2024: Bengaluru-based education-focused fintech platform Propelld announced its NBFC subsidiary, Edgro, has secured over $25 million in debt financing just six months after launch. This strategic move strengthens Propelld’s mission to democratize access to education, particularly in India’s Tier 2 and Tier 3 cities, where traditional financial services can be limited.
“We are leveraging these funds to ensure that more and more students can access flexible loan options,” said Nikunj Agarwal, Head of Debt and Lending Alliance at Propelld. “As Edgro continues to expand its reach and enhance our offerings, we are grateful for the robust support from our financial partners.”
The debt financing round comes from a consortium of prominent lenders, including Credit Saison India Private Limited, AU Small Finance Bank, InCred Financial Services Limited, and Northern Arc Capital Limited. This strong backing allows Propelled to further its mission of empowering students through education.
Propelld Edgro Expanding Reach and Partnerships
“Edgro is further actively seeking bank borrowings and co-lending partners with the same brand philosophy to expand our mission,” Agarwal added. This statement highlights Propelled’s commitment to building a collaborative network within the financial landscape to increase student loan accessibility.
Founded in 2019 by IIT Madras graduates, the ed tech startup offers innovative solutions like “study now and pay later” products and income-sharing agreements through Edgro. In February 2022, the company secured $35 million in a Series B funding round, demonstrating strong investor confidence in their vision.
Propelled has established itself as a major player in the Indian education financing sector. They currently work with over 2,000 educational institutions across various segments, including EdTech, K12, universities, schools, and upskilling programs. Their impressive annual disbursal run rate of Rs 1,200 crore and low NPA (Non-Performing Assets) rate below 1% showcase their responsible lending practices.
The latest debt financing and ongoing partnership development mark a significant step forward in their mission to democratize education and empower students across India.
