EduFund, India's first company that covers a child’s higher education journey from savings (rupee and dollar) to immigration, announced that it has raised $1 million in seed round led by Anchorage Capital Partners, with participation from ViewTrade Holding Corp and other angel investors.
With the latest round of investment, the Ahmedabad-based startup plans to augment the product offerings and expand market presence.
Co-founded by Eela Dubey and Arindam Sengupta in June 2020, EduFund offers guidance on the true cost of education at one's desired institute, allows users to invest in mutual funds in India and the United States, and helps reduce the complexity of studying abroad by offering counselling services for the college admissions process. The app also helps to reduce the complexity of studying abroad by offering counselling services for the college admissions process.
The company's vision is to help provide a holistic planning tool to help every parent plan for their child's higher education journey and reduce the financial burden associated with quality higher education.
Speaking about the company, Co-founder of EduFund, Eela Dubey, said, "While a majority of Indian parents save for their child's education, the concept of investing and creating a planned fund for their child, from an early age, is still a growing concept. Add to this the rising cost of attending a four-year college programme, which has been rising twice as fast as inflation each year; quality education is becoming more expensive. At EduFund, we believe that planning early and making the right investments outside of the traditional FDs and LICs is important, especially given the high price of premier institutes and inflation over the years."
She further added, "Loans are a solution; however, speaking from personal experience, students find it hard to get them because of no co-signer/collateral. Therefore, having some savings against the loan is also potentially beneficial for the future."
EduFund targets parents across all income groups concerned about their child's education dreams. The company believes that while every parent has a lot of ambition for their child's education, many cannot afford it due to a lack of guidance and planning. Therefore, EduFund aims to help parents plan their child's education early, without compromise.
Commenting on the funding, Partner at Anchorage Capital Partners, Arjun Sheth, said, "There are millions of people in India who want to save money to send their child abroad, but they don't know how. EduFund helps them do just that by advising parents how much to save and offering services, such as loans, different investment opportunities, counselling services, etc. We are thrilled to invest in a company that's making parents' lives much easier to plan for their child's education."
Sheth further commented, "If you are like most Indian Parents, you want your child to go to College. By starting a savings plan you reduce the burden of taking a big loan. EduFund is revolutionizing how “Savings for Education” should be managed by a young parent. We believe their one-stop ecosystem of Savings, counselling and loans allows a parent to create their own customized plan to a better future for their child. Eela and Arindam's personal journey gives this venture the drive & commitment to accomplish their vision."
The company has entered into multiple counsellor partnerships, including, OnCourse Global, Zsoldos Coaching, Reva Education Consultant, and Overseas Education Consultancy.
EduFund is also a Registered Investment Advisor regulated by SEBI. Furthermore, it ensures 100% privacy and confidentiality to keep users' personal information safe. The company has also partnered with a prominent US broker-dealer to offer investments in US dollar-related products.
Last year in February, EduFund had raised INR 2.5 Crores in a pre-seed round led by US-based holding corporation ViewTrade Holding Corp. Angel investors from a private syndicate through AngelList also participated in this round.