Exclusive: Eduvanz raises Rs 100 Cr in Series B from Sequoia and others

Eduvanz, which provides loans for skill development to students, has raised around Rs 100 crore or $13.5 million in its Series B round. This is the second equity round for the Mumbai-based company within a year which raised $5 million in Series A financing led by Sequoia Capital India in August 2020.

Eduvanz has approved the allotment of 92,166 Series B preference shares at an issue price of Rs 10,847.09 per share to raise Rs 100 crore or $13.5 million, regulatory filings show.

Sequoia Capital India and Juvo Ventures have collectively invested a little over Rs 50 crore or $7 million while 15 other investors have put in the remaining amount.

The company was reportedly in talks to raise $15 million in a new round.

According to Fintrackr’s estimates, Eduvanz has raised the fresh capital at a post-money valuation of Rs 530 crore or $70 million.

Following the allotment of fresh shares, Sequoia has acquired 34.83% stake in Eduvanz followed by Unitus Ventures which now controls 16.29% stake in the company. Promoters equity has been diluted to 12.21% whereas new investor Juno has acquired 5.07% holding in the company.

It’s worth noting that Eduvanz has kept 19.48% equity under its ESOP and MSOP scheme.

Eduvanz provides loans to students to finance their school, coaching and test prep fees. Salaried and self-employed individuals can also seek loans from it to fund their up-skilling expenses. So far, the five-year-old firm claims to have disbursed loans worth Rs 300 crore to over 25,000 learners.

The startup works with training partners, corporates and certification providers spanning more than 16 industry sectors to increase their enrolments by providing innovative financial solutions to students and skill-seekers.

Eduvanz competes with the likes of Mpower Financing, Credenc, and Propelld. Mpower Financing, which gives education loans to international students, has emerged as the largest player in this space. The Manu Smadja-led company had recently raised $152.5 million in a mix of equity and debt from Tilden Park Capital Management and King Street Capital Management.

Backed by the likes of Kunal Shah's QED Innovation Labs and Michael & Susan Dell Foundation, Eduvanz had also raised $10 million in debt funding from InCred Financial Services, Vivriti Capital, and Northern Arc Capital in February this year.