Propelld, an education-focused lending platform, is set to secure Rs 260 crore (around $30.5 million) in its Series D round led by WestBridge Capital with the participation of Stellaris Venture Partners. Last year in May, Propelld’s wholly-owned NBFC subsidiary Edgro raised $25 million in debt from Credit Saison India, AU Small Finance Bank, InCred and Northern Arc. Propelld’s board passed a special resolution to allot 20,732 Series D compulsory convertible preference shares (CCPS) at an issue price of Rs 1,25,408 each to raise the aforementioned sum, its regulatory filing accessed from the Registrar of Companies (RoC) shows. Westbridge Capital will invest Rs 240 crore ($28 million) via Setu AIF Trust, Konark Trust, and MMPL Trust while Stellaris Venture Partners will contribute with Rs 20 crore.
The investment will be utilized to meet the company’s working capital needs and capital expenditure for business expansion, the filing added. Following the latest fundraise WestBridge will hold a 46.9% stake in the company while Stellaris Venture Partners will hold 15.69% stake. As per startup data intelligence platform, the Benguluru-based company raised around $39 million to date including its $35 million round raised Feb 2022.
For the fiscal year ended March 2024, Propelld’s operating revenue remained flat at Rs 82 crore while losses ballooned 61% to Rs 43 crore during the same period. It is yet to disclose its FY25 numbers. Propelld competes with other education loans-focused fintech startups like Leap Finance which recently raised $100 million debt from HSBC under its ASEAN Growth Fund, Grayquest, which secured $9.3 million (Rs 80 crore) in its Series B round IIFL Fintech Fund and others.
ABOUT PROPELLD
Propelld has been founded in 2019 by Bibhu Prasad Das, Victor Senapaty, and Brijesh Samantaray. Propelld provides education loan financing through 'Study Now, Pay Later' products and Income Sharing Agreements (ISA) via its NBFC arm. The company also offers collateral-free education financing options. Propelld addresses the problem of students not getting access to finance from traditional financial institutions due to low/non-existent credit or work history. Propelld looks at a students' academic performance, the Institute’s past performance, and the outcome of the course, and the student's future potential rather than the historical credit/work history or income levels. They believe that if a student is talented and motivated enough, he should be allowed the financial independence to pursue his dreams. They work with vetted partner Institutes offering courses that improve the ROI of an individual.