Capital India to invest $ 25 million in education loan company Credenc
Capital India, a finance company, has invested $ 25 million in Credenc, a Delhi-based education lending fintech platform.
Credenc, which was founded by Avinash Kumar and Mayank Batheja in 2017, provides loans for tuition, online development and higher education. With the investment from Capital India and using a combination of debt and equity, Credenc plans to build a book of Rs 3,000 crore by 2025.
Credenc has announced that it will soon launch India’s first student-focused neo-bank. Capital India has not disclosed the amount of its stake in Credenc.
The founders of Credenc will continue to operate. “We would not want to disrupt the functioning of the organization and believe they know the company best,” Capital India said in a statement.
SK Narvar, promoter of Capital India, said India spends $ 50 billion annually on tuition fees (over 3.5 trillion rupees), of which only five percent is funded by organized lenders.
Capital India Finance Limited (CIFL), as the company officially calls itself, is an India-focused SME finance and affordable housing entity.