Exclusive: Eduvanz raises over Rs 100 Cr led by Rethink Education

Education loan provider Eduvanz has raised Rs 104.5 crores or $12.6 million in its extended Series B round from new and existing backers. This is the maiden equity funding for the Mumbai-based company in 2022.

The board at Eduvanz has passed a special resolution to issue 68,373 Series B1 CCPS at an issue price of Rs 15,283.71 per share to raise Rs 104.5 crore, according to its regulatory filings with the Registrar of Companies.

Rethink Education Ventures led the round with Rs 41.5 crore while existing investors: Sequoia Capital, Juvo Ventures, and Unitus Ventures pumped in Rs 16.59 crore, Rs 29.04, and 16.59 crore respectively.

Following the new proceeds, Sequoia holds a 32.4% stake in Eduvanz while Rethink, Juvo, and Unitus command 5%, 3.50%, and 2% respectively. As per Fintrackr’s estimates, the company has been valued at around Rs 850 crore or $104 million (post-money).

So far, the firm has raised more than $30 million in equity and debt rounds including a Rs 50 crore debt in April. Its valuation increased by almost 49% as Eduvanz was valued at $70 million in the last round.

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. The firm claims to have disbursed loans worth Rs 337 crore in FY22.

The six-year-old company competes with Financepeer, GrayQuest, and Propelld. In April, Financepeer raised $38 million in a Series B round led by QED Fund while GrayQuest recently cornered Rs 31 crore in its Series A round. Entrackr exclusively reported its Series A on December 13. Mpower Financing is the largest player in this space which raised $152.5 million in a mix of equity and debt in July 2021.

Eduvanz’s revenue from operations Surged 2X to Rs 27.5 crore in FY22 from Rs 13.6 crore in FY21 while its losses widened to Rs 23.15 crore in the last fiscal year as compared to Rs 10.44 crore in FY21.