SG-based EduFi secures $6.1M for "study now, pay later" platform

EduFi recently secured $6.1M in a pre-seed round of investment. Zayn VC spearheaded this round, with additional participation from Palm Drive Capital, Deem Ventures, Q Business and several angel investors.

• The Problem: In Pakistan, student loan products are virtually non-existent. Instead, students resort to personal loans - a process that's both costly and time-consuming.

• The Solution: EduFi's AI-powered 'study now, pay later' platform. It provides students with an alternative to high-interest personal loans, thereby addressing Pakistan's high poverty levels and low literacy rates.

• The Impact: Approximately 40% of Pakistani students attend private schools due to subpar public education. These families spend over $14B on education annually. Moreover, over half of Pakistan's adult population lacks access to financial services. EduFi aims to tackle both these issues.

• The CEO's Vision: Aleena Nadeem, CEO of EduFi, observed children struggling financially to receive quality education. She identified a significant drop in students continuing to higher education after high school - a gap where EduFi could make a difference.

• The Process: Applicants need to provide financial information such as 12-month bank statements or proof of a stable source of income. Once approved, the loan amount is sent directly to the educational institution's bank.

• The Progress: Currently, EduFi has partnerships with 15 universities, reaching approximately 200,000 students who can now easily pay their fees for undergrad, Master’s and PhD programs.

• The Future: With the recent investment, EduFi plans to optimize its platform, expand to neighboring countries, and launch other fintech products, like student credit cards.

EduFi offers the hope of quality education for all, disrupting the traditional banking system with its digital, user-friendly, and swift loan disbursal process. "Every student we've helped is a testament to the ambition, opportunity, and empowerment we are striving for at EduFi," says Nadeem.