Today, the India-based edu-fintech company EduFund revealed that it had raised $3.5M in a Pre-Series A funding round. The funding round was spearheaded by the international venture capital company MassMutual Ventures (MMV) and saw the involvement of notable investors such as DSP Investment Managers, Anchorage Capital Partners, and Kunal Shah. EduFund’s platform has attracted 70,000 parents who have successfully engaged with the platform.
Eela Dubey and Arindam Sengupta founded EduFund in 2020 to help Indian parents plan, save, and invest in their children’s education. EduFund helps parents plan and save across asset classes to meet education inflation, which averages 8-10% domestically and over 4% in countries with substantial Indian student enrollment. The organization also offers school loans and scholarships to parents, as per reported by NewsPatrolling.
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The solution, based on a mobile application, has joined forces with prominent Asset Management Companies (AMCs) such as Tata, DSP, UTI, ICICI, Aditya Birla, and HDFC to present various investment products. In addition, it has partnered with well-known lenders like ICICI Bank, HDFC Credila, IDFC, and others to offer education loans. The solution also offers education counseling services that assist potential students in discovering their ideal university.
“The demand for world-class education in India is growing rapidly, and EduFund’s innovative approach to addressing the funding gap for higher education is very exciting. The founders’ asset management expertise and deep understanding of the market, coupled with the significance of education in Indian culture, make the company a compelling investment opportunity. We are excited to partner with EduFund in their mission to make higher education accessible to all,” said Anvesh Ramineni, Managing Partner at MMV.
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Co-Founders Dubey and Sengupta said: “Our goal at EduFund has always been to help parents start saving early and to provide solutions that will financially enable the aspirations they have for their children. Today, the entire education planning journey in India is very siloed. If a parent wants to save, they may visit a financial planner. If their child needs an education loan, they may approach a bank. We wanted to reduce these pain points and bring the entire journey onto one platform so that parents can have a more seamless and centralized experience. With this new funding, we plan to accelerate our growth, create new solutions, and invest in technology.”
“Returns are a function of time (compounding). The luxury of time is available only to those investors who start early. Parents with young children have the advantage of having time on their side,” writes Managing Director and CEO of DSP Mutual Fund, Kalpen Parekh. He went on to mention that “this investment in EduFund is our way of encouraging two important objectives: real compounding and creating a corpus for our children’s education.”
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About EduFund
EduFund helps Indian parents plan international higher education. Robo-advisory allows parents to create an education fund depending on their financial and academic aspirations. The EduFund app connects parents with top education specialists to plan their child’s foreign education academically.
