San Francisco and Bengaluru-based fintech startup Leap Finance just lately stated that it has raised $5.5 million in a spherical led by Sequoia India. The spherical additionally noticed participation from main angels together with – Bhupinder Singh, Founder and CEO, Incred, in addition to Kunal Shah, Founder and CEO, Cred, amongst others.
Co-founded by IIT Kharagpur alumni Vaibhav Singh and Arnav Kumar, Leap Finance affords training loans to college students primarily based on the scholars’ future earnings. In keeping with the startup, its engine takes under consideration a number of alternate options and derived knowledge factors to foretell future earnings potential.
Talking on the issue the startup is fixing, Vaibhav Singh, Co-founder of Leap Finance, stated,
“Indian college students make up for 25 p.c of a category in lots of high graduate programmes within the US. These are sensible, hard-working college students who received in the perfect programmes and have a fantastic future forward. But, the training loans they avail of are at rates of interest twice as excessive as their American friends. This disparity stems from systemic inefficiencies and lack of innovation.”
To counter this, he added, Leap Finance has innovated on a number of dimensions – expertise, monetary structuring, and threat – to carry down the rate of interest and enhance buyer expertise.
Talking on the funding, Ashish Agrawal, Principal, Sequoia Capital India LLP, stated,
“Indian college students learning overseas as we speak spend $15 billion yearly and we estimate an annual credit score want for greater than $5 billion towards this. This attractiveness of the market, sturdy founder-market match, and Leap’s mission-driven group are what led to our perception in an early partnership with them.”
The fintech startup claims to supply loans to college students who’re beginning graduate research within the US within the upcoming fall season (2020), at rates of interest beginning as little as eight p.c. In keeping with the startup, its loans provide full examine price protection and require no collateral.
“Indian college students are more and more pursuing the perfect world training and world careers. A lot of our most inspiring leaders – from Satya Nadella to Sundar Pichai, have walked this path. We wish to be backers of the following era of promising college students, no matter their household background or means. A aggressive financing product is the primary providing and units the bottom for our bigger imaginative and prescient to grow to be a cross-border neobank,” stated Arnav Kumar, Co-founder, Leap Finance.
At the moment, Leap helps greater than 150 US colleges and is trying to finance 1000 college students within the upcoming fall season. Additional, the startup as we speak has a 25-member sturdy group.
(Edited by Suman Singh)