NBFC-backed Digital Lending Platform Propelld Secures Over $25 Million Through Debt Raising
Bengaluru, 28th May 2024: Propelld, a fintech leader in education lending, today announced that it has secured over USD 25 million through debt raising for Edgro, its wholly-owned subsidiary which is a licensed Non-Banking Financial Company (NBFC).
Edgro has raised the amount from nine lenders such as Credit Saison India Private Limited, AU Small Finance Bank, MAS Financial Services Limited, Vivriti Capital Limited and Northern Arc Capital Limited.
The education lending sector holds significant growth potential, especially in tier 2 and tier 3 cities where students face difficulties in securing finances from accredited lenders due to limited access. Others have to resort to high-interest loans from private lenders or by pledging gold, adding to their burden. Edgro, which commenced operations only in July 2023, has raised such a significant amount due to the company’s reliance on the larger mission of democratizing access to education through innovative financial offerings.
“We are leveraging these funds to ensure that more and more students can access flexible loan options. As Edgro continue to expand its reach and enhance our offerings, we are grateful for the robust support from our financial partners, which enables us to further the mission of democratizing education and empowering more students,” said Nikunj Agarwal, Head of Debt & Lending Alliance, Propelld. “Edgro is further actively seeking bank borrowings & co-lending partners with the same brand philosophy to expand our mission,” he added.
Within just six months of operations, Edgro, a fully owned subsidiary of Propelld, has successfully raised $25 million in debt financing. This significant achievement underscores the deep trust and confidence that banks and NBFCs have placed in their operational excellence and shared commitment to financial inclusion. This funding not only reflects these financial partners’ belief in Propelld’s vision but also signifies a strong alignment with their objectives of supporting education and creating equitable access to it.
Founded in 2017 by the dynamic trio Bibhu Prasad Das, Victor Senapaty, and Brijesh Samantaray, Propelld pioneered innovative education loan financing solutions. They introduced unique concepts like future income-based approval and alternative underwriting, diverging from traditional creditworthiness checks. With a first-mover advantage in the education loan segment, Propelld transcended conventional credit assessment methods to offer collateral-free education financing. This approach targets profiles typically overlooked by banks and other NBFCs, promoting financial inclusion and making quality education accessible to all.