Funds will be used for new offerings, expand management team
City-based education finance company Shiksha Financial Services India Pvt. Ltd. has raised ₹55 crore to provide financial aid to educational institutions and school children, said a top official.“We have raised successfully ₹55 crore, at a time when the fintech start-ups are finding it difficult,” said V.L. Ramakrishnan, founder director and CEO, Shiksha Financial Services India Pvt. Ltd. “The funds would be used to provide working capital to educational institutions and to parents as non-collateral loans to pay school education fees,” he said.
“Besides, we will use the funds for expanding our distribution presence to States, including Maharashtra, strengthening the management team and work on new product offerings within the education finance sector,” he added.
According to Mr. Ramakrishnan, this is the third time the fintech start-up had raised funds. Till 2017, it had raised ₹21 crore. Zephyr Peackock India Growth Fund and existing investors Aspada Investment Company and Michael & Susan Dell Foundation had invested in the second round.
Till date, Shiksha Finance had disbursed business loans aggregating ₹170 crore to 1,700 educational institutions benefitting 6.5 lakh students and education study loans to parents of 15,300 children.
“Within the next 18-24 months, our aim is to increase our offerings to 4,000 educational institutions to cover 16 lakh students and school education fees to one lakh students. Currently, we have a loan book of ₹102 crore against 10 crore some two years back,” he said.
“Shiksha Financial operates in 23 districts of Tamil Nadu, Puducherry, Karnataka, Andhra Pradesh, Telangana and Maharashtra. It is also planning to enter new territories,” said Jacob Abraham, founder-director and COO, Shiksha Financial Services.