Leap Finance Bags $100 Mn Debt Funding From HSBC

Leap Finance, a fintech platform for Indian students pursuing higher education overseas, has secured $100 million in debt funding from London-headquartered bank HSBC through its Asean Growth Fund.

The funds will help to expand its service to more US states, partner with more universities and grow in India.

This funding comes soon after the startup raised $65 million in January, led by London-based PE fund Apis Partners, with support from Owl Ventures, Jungle Ventures, and Peak XV Partners.

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So far, the startup has secured over $400 million in equity and debt.

The company provides education loans for students pursuing postgraduate degrees abroad and has given over $250 million in loans to 5,000+ students.

These loans are based on a student’s future earning potential rather than their current income or collateral.

“This fundraising is a debt-raise to help us finance more students going to the US for international study.The average ticket size is about $50,000, so we’ll be able to support over 2,000 students through this facility,” cofounder Vaibhav Singh said.

“The reality is that the outcomes students can achieve from a high-quality education are disproportionately large. From a student's perspective, it’s all about RoI. What am I spending, and what am I getting out of it? I don't think the rupee depreciation has much of an impact on students going to good schools and good programmes,” he added.

Saun Sakhrani, head of structured banking, Southeast Asia, HSBC, said, “We are honoured to provide Leap Finance with this bespoke and scalable facility that will help grow its portfolio while supporting more Indian students as they pursue higher education in the US.

About LeapFinance

Founded in 2019, Leap, which runs LeapScholar, LeapFinance, GeeBee and Yocket, It is a study-abroad platform that helps students with everything they need for international education and careers. Its services include counseling, visa support, exam prep, and education loans.

Leap Finance makes up one-third of the company's business, according to Singh.

The company operates in 11 countries, including India, the Philippines, Vietnam, Bangladesh, Nepal, and Nigeria, with plans to expand further. India accounts for over 80% of its revenue.

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