Updated: Eduvanz secures bridge round

Education loan provider Eduvanz has secured Rs 25.52 crore in a bridge funding round co-led by Juvo Ventures and Capria Fund, with additional participation from Peak XV and Unitus Ventures.

Eduvanz's board has approved a special resolution to issue 26,405 preference shares at an issue price of Rs 9,667 each, raising Rs 25.52 crore, according to a regulatory filing accessed from the RoC.

Capria Fund and Juvo Ventures contributed Rs 8.65 crore and Rs 8.57 crore, respectively, while Peak XV and Unitus Ventures invested Rs 4.28 crore and Rs 4 crore.

According to the filings, the newly raised funds will be utilized for working capital, product development, and marketing initiatives.

The company was valued at Rs 850 crore during the previous funding 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 newly raised funds will be directed toward working capital, product development, and marketing initiatives. 

After the bridge round, Peak XV Partners will hold a 31.72% stake in the company, while Juvo Ventures and Capria Fund will own 4.89% and 3.14%, respectively.

The new funding is coming after a gap of more than two years for Eduvanz. In December 2022, it scooped up $12.6 million in its extended Series B round from new and existing backers. Entrackr exclusively reported the development. 

Eduvanz competes with well-funded firms such as Grayquest, Avanse Financial, Financepeer, Propelld, Leap Finance, and Auxilo. Recently, Leap Finance raised a $65 million round while Auxilo raised funds from Motilal Oswal Group.

Update at 3:50 PM, Tuesday: An earlier version of the story stated that Eduvanz raised its latest round at a 35% lower valuation. However, a company spokesperson clarified that it was a convertible round; therefore, the reported valuation cut is not accurate.