Education loans platform Credenc on Tuesday said it has raised USD 2.5 million (Rs 17.8 crore) in a funding round led by Omidyar Network India.
The seed funding round was led by Omidyar Network India with participation from EMVC, Better Capital, and IIMK Alumni Fund.
The capital raised would be used to expand operations to a 1,000 colleges across 50 cities over the next two years. Credenc also plans to hire across technology, credit and banking partnerships.
"We see this partnership as an opportunity to demonstrate that a highly impactful and profitable business can be built in the large and untapped higher education financing space, said Sarvesh Kanodia, Associate, Omidyar Network India.
Mayank Batheja, Co-founder, Credenc said, Currently, only 5 per cent of the USD 50 billion annual spend on college tuition fee is financed by organised lenders. We believe this penetration should be at least 15 per cent.
Delhi-based Credenc, founded by Avinash Kumar and Mayank Batheja in 2017, works as the digital finance desk of over 200 management colleges across 17 Indian cities.