EduFi, a FinTech startup, has secured $6.1m in funding to support the launch of the first-ever digital student loan platform in Pakistan.
It has been designed to assist families in managing the financial burden of school fees. In Pakistan a substantial 40% of students attend fee-paying schools, contributing to an annual spend of over $14bn on education.
This pre-seed round was spearheaded by Zayn VC, with notable contributions from Palm Drive Capital, Deem Ventures Ltd, Q Business, Abhi, AdalFi, Techlogix, and various angel investors.
At its core, EduFi is a digital platform and mobile application, empowering students to secure loans for their school fees. It operates with the support of liquidity providers and schools, fostering a healthy ecosystem for student loans. The platform is distinguished by its education sector-focused credit scoring model, which utilises advanced machine learning algorithms and artificial intelligence.
EduFi’s technology stack is another highlight, offering transparency and efficiency. It allows liquidity providers to track capital performance and enables schools to monitor student metrics such as attendance and academic performance. The EduFi App is designed to streamline the loan application process, ensuring loans are disbursed within 48 hours of application.
Founded in 2021 and headquartered in Singapore, EduFi was established by Aleena Nadeem. Her experience and education, including an MIT background, were instrumental in conceptualising EduFi. The team’s comprehensive research into cultural, social, and economic factors influencing education and finance in Pakistan laid the groundwork for EduFi’s intuitive, transparent, and secure user experience.
Aleena Nadeem, CEO and founder of EduFi, emphasised the transformative power of education. “Education offers hope and can change the lives of people. I am one example of millions out there. EduFi offers this hope and will be a trigger for change in the lives of people as we lift one of the biggest burdens on aspiring families.
“For example, students in dental or medical schools have to pay upwards of $8,000 upfront which is not sustainable for many in Pakistan. Every student we’ve helped is testament to the ambition, opportunity and empowerment we are striving for at EduFi.”
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