Leap, a fintech platform for Indian students pursuing higher education overseas, has raised $75 million in its Series D round led by existing investor Owl Ventures. The round saw participation from new investors Steadview Capital and Paramark Ventures along with other existing investors Jungle Ventures and Sequoia India.
Nine months ago, the Bengaluru and San Francisco-based startup had raked in $55 million in a Series C led by Owl Ventures. The company has raised $150 million to date including a $17 million Series B in March last year.
According to the company, the fresh proceeds will be used towards scaling the product and deepening its existing offerings and launching newer ones in the months ahead.
Leap, which runs LeapScholar, LeapFinance, and Yocket, is a full-stack platform for students keen on pursuing education in overseas universities. The company offers a suite of products including international test prep like IELTS, TOEFL, SAT, admissions and visa counselling as well as financial offerings like international student loans, international bank accounts, credit cards, and money remittance services.
Launched by Vaibhav Singh and Arnav Kumar, Leap provides access to institutes in the US, Canada, UK and Australia. According to the company, it has helped over 175,000 students in their study abroad journey in the past 12 months.
Leap claims to offer collateral-free education loans via Leap Finance Inc at an interest rate between 8.25% to 10.25%. The company charges a 2% processing fee on loans at the time of fund disbursement.
Leap competes with the likes of MPower Financing and Credenc in terms of financing education abroad. In July last year, Mpower raised $152.5 million in equity and debt round whereas Credenc raised $25 million from Capital India.
For the year ending on March 31, 2021, the operating revenue of Leap’s India entity stood at Rs 6.35 crore with a loss of Rs 3.84 crore, according to the company’s annual financial statement filed with the Registrar of Companies (RoC). The company was profitable in FY20 on a standalone basis.