Mumbai based Eduvanz Financing, which operates an eponymous online student loans platform, on Wednesday said it has raised $5 million in an extended Series A round led by venture capital firm Sequoia India.
Existing investor venture capital firm Unitus also chipped in during the round.
The startup plans to deploy the capital to build technologies to support the lending cycle. This includes new credit products, artificial intelligence (AI)-based risk management and easier collections to support borrowers through their lending journey.
It will also use some part of the funds to expand to tier 2 and 3 cities in India with a larger team, according to a statement.
TechCircle reported last week, citing regulatory filings, that the company was raising about $3 million (Rs 23 crore) as part of the Series A funding round led by Sequoia Capital and Vistra ITCL, an entity of Unitus Seed Fund India II.
"Over the next decade, our country will need skilled workforces trained in new technologies and new skills. By 2022, we need 700 million skilled workers. However, only 10% of the total workforce receives any formal skill training. By combining innovative student-centric loan solutions, Eduvanz is enabling higher enrollment for learners across colleges, universities, certification partners, institutes, and schools," Varun Chopra, chief executive officer (CEO), Eduvanz said.
Eduvanz, established in 2016 by Varun Chopra, Raheel Shah and Atul Sashittal, is a non-banking financial corporation (NBFC) and private finance company.
In February, it raised an undisclosed amount in a bridge round from Unitus Seed Fund 2. Last year, it bagged an undisclosed amount in the bridge round from Sequoia Capital India. The startup raised $2 million (Rs 13.8 crore at the exchange rate then) in a funding round from social-impact investor Unitus Ventures and Michael & Susan Dell Foundation.
Eduvanz raised $0.86 million in a seed funding round from Unitus Seed Fund 2, and $500,000 in an angel round of funding led by venture capital firm Blinc Management Advisors, in 2018.
It also scored an undisclosed amount in angel funding from Binc Management Advisors, Italica Furniture, in 2016. Around the same time, it raised an undisclosed amount in seed funding from Binc Management Advisors, according to the data from the research platform VCCEdge.