Funding Led by Classplus and Pravega Ventures
GyanDhan, India’s leading education loan marketplace, has secured ₹50 crore (approximately $6 million) in its Series A funding round. The investment was led by edtech platform Classplus and venture capital firm Pravega Ventures, marking a significant milestone in GyanDhan’s mission to simplify education financing for Indian students.
Scaling Reach to Smaller Cities
With the fresh capital, the company plans to aggressively expand its reach into more than 50 Tier II and Tier III cities. Currently serving students primarily in metro and Tier I locations, the company aims to bridge the accessibility gap for aspiring students from smaller towns who often face hurdles securing education loans.
The move aligns with GyanDhan’s broader vision to make quality education financing easily accessible to every Indian student, irrespective of their location.
Doubling Financial Partnerships and Consultant Network
To serve a growing customer base more efficiently, GyanDhan plans to double its network of financial institutions from 15 to 30. These partnerships include leading public and private sector banks and NBFCs like State Bank of India, ICICI Bank, Axis Bank, InCred, and Credila.
The company will also scale its consultant network, enabling more personalized guidance for students during their education loan journey. GyanDhan already partners with over 100 education consultants across India.
Investments in Technology and Talent
A portion of the funding will be used to enhance GyanDhan’s proprietary SaaS platform, which is used by partners and consultants to streamline loan application and approval processes.
Additionally, the firm plans to grow its tech, credit, and sales teams significantly. These teams will support the company’s scaling goals and help develop more data-driven credit assessment models to better serve students with diverse financial backgrounds.
Workshops and Financial Literacy Initiatives
GyanDhan is also going to put money towards student community-building, with workshops and financial literacy sessions for students and families to educate them about education financing and responsible borrowing.
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Strong Track Record and Financial Performance
Founded in 2015 by IIT Kanpur alumnus Ankit Mehra and IIT Delhi alumnus Jainesh Sinha, GyanDhan operates a hybrid model combining a tech-driven marketplace and its own registered NBFC lending arm.
The company claims to have facilitated over ₹7,000 crore ($840 million) in education loan originations to date. It now targets reaching ₹18,000 crore ($2.1 billion) in the next three years.
In terms of financials, GyanDhan posted an operating revenue of ₹21.4 crore and a net profit of ₹1.36 crore in FY 2023-24, signaling robust unit economics and operational efficiency.
Investor Confidence and Industry Backing
Mukul Rustagi, CEO and co-founder of Classplus, praised GyanDhan’s resilience, stating, “We love resilient founders, and the GyanDhan team has demonstrated the DNA to thrive in a large but difficult market.”
Pravega Ventures, an early backer of technology-first startups, echoed this sentiment. A spokesperson said, “GyanDhan’s hybrid model and strong tech infrastructure give them an edge in becoming the go-to platform for education financing in India.”
Addressing India’s Education Loan Gap
Although India’s higher education has become increasingly expensive, education loan penetration remains below 20% compared to over 45% in developed markets such as the U.S, resulting in a very large underserved segment that GyanDhan is now in a position to serve.
By offering a transparent, technology-backed lending ecosystem, GyanDhan aims to make the education financing experience seamless and accessible, especially for students from underserved regions.
Outlook: A Step Closer to Democratizing Education
With this Series A investment, GyanDhan is now both an enabler for the democratization of education financing in India. The company is increasing partnerships and advancing a focus on tech and awareness, a clear signalling of their commitment to help students realize their study plans – in India and overseas. Demand will continue to increase, and the GyanDhan platform will be valuable, particularly as we see a true inclusivity and financial possibility.
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