The funds will be used to augment the product offerings and expand market presence.
EduFund, India’s first company that covers a child’s higher education journey from savings (rupee and dollar) to immigration, today announced it raised a $1 million seed round. Led by Anchorage Capital Partners, along with additional investments from ViewTrade Holding – Corp and other angel investors, the funds will be used to augment the product offerings and expand market presence.
Founded in June 2020, EduFund provides 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.
“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,” said Eela Dubey, Co-Founder of EduFund. “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,” she added.
The platform acts as a one-stop-shop by providing users a unique college calculator that helps one understand the true price (considering factors such as inflation, currency, and accommodation expense) of any educational organisation across countries. It also allows users to invest in mutual funds in India and the United States, which helps create discipline in savings. The app also helps reduce the complexity of studying abroad by offering counselling services for the college admissions process. In addition, it helps with loans and provides guidance on immigration.
“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, counseling services, etc. We are thrilled to invest in a company that’s making parents’ lives much easier to plan for their child’s education,” said Arjun Sheth, Partner at Anchorage Capital Partners. “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 revolutionising 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 personal journey gives this venture the drive & commitment to accomplish their vision,” he added.
“Having witnessed the progress made over the past year, we at ViewTrade Holding are proud to again invest in EduFund. Both Eela and Arindam, continue to demonstrate a passion and tenacity for the work being done, we believe they are in the right place at the right time, and we are excited to be part of their journey,” said James St. Clair, Co-Founder & President at ViewTrade.
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.
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.
Source: Business World