Education fintech Credenc firm raises Rs 187 crore from Capital India
Capital India Finance Ltd (CIFL) on Monday said it has invested over Rs 187 crore (USD 25 million) in education-focussed lending fintech Credenc. The strategic investment is a mix of equity and debt, the non banking financial company said in a release. With this investment, Credenc is looking to build a book of Rs 3,000 crore by 2025, the company said. “The annual spend on college fees in India is around USD 50 billion (over Rs 3.5 lakh crore), of which only 5 per cent is financed by organised lenders.
“With Credenc, CIFL intends to change the segment perception and reduce underwriting risk basis Credenc’s future employability score, which will help this percentage go up to at least 15 per cent, aiming to lend Rs 3,000 crore by 2025,” S K Narvar, promoter, Capital India said. Avinash Kumar, Co-founder, Credenc said the partnership will give both the companies balance sheet and cost of capital advantage which will help in disrupting the education lending segment by providing loans to students. Credenc offers education loans covering K-12 school fee, online upskilling courses, higher education as well as study abroad courses at the click of a button and will soon launch India’s first student focused neo bank.
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It is currently developing the entire student education ecosystem helping students and parents with credit, accommodation, employability, savings, forex, and investments on a mobile app. Capital India is an SME and affordable housing finance- focussed NBFC. Credenc is a Delhi-based fintech working as the digital finance desk of over 1,000 colleges across 17 cities in India.
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