Capital India, a finance company, has invested $ 25 million, in Credenc, an education lending fintech platform based in Delhi.
Credenc, which was founded by Avinash Kumar and Mayank Batheja in 2017, gives loans for schooling, online upskilling and higher education. With Capital India’s investment and by using combination of debt and equity, Credenc plans to build a book of Rs 3,000 crore by 2025.
Credenc said it will soon launch India's first student-focused neo bank. Capital India did not disclose how much stake in will acquire in Credenc.
Credenc’s founders will continue to run operations. “We would not want to disrupt the working of the organisation and believe they know the business best,” Capital India said in a statement.
SK Narvar, promoter of Capital India, said India annually spends on college fees $50 billion (more than Rs 3.5 trillion), of which only five per cent is financed by organised lenders.
Capital India Finance Limited (CIFL), as the company is formally called, is an India-focused SME finance and affordable housing entity.
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