Based in Singapore, ErudiFi desires to help more students in Southeast Asia keep in school by giving them inexpensive financing choices. The startup introduced today it has raised a $5 million Series A, co-led by Monk’s Hill Ventures and Qualgro.
ErudiFi at the moment works with more than 50 universities and vocational schools in Indonesia and the Philippines. Co-founder and chief executive officer Naga Tan advised USANewsHunt that students in these nations have limited financing choices, and infrequently depend on buddies or family, or casual payday lenders that charge high interest rates.
To provide more accessible financing choices, ErudiFi partners with accredited universities and schools to offer sponsored installment plans, utilizing tech to scale up whereas protecting prices down. Interest rates and reimbursement terms fluctuate between institutions, however could be as little as 0%, with loans payable in 12 to 24 months.
By providing their students with inexpensive financing plans, ErudiFi can enhance retention rates at schools, serving to them keep students who would in any other case be forced to drop out due to financial points.
Tan said ErudiFi’s worth proposition for educational institutions is “being able to offer a data-driven financing solution that helps with student recruitment and retention. Students also greatly benefit because our product is one of the few, if not the only, affordable financing option they have access to.”
In a press statement, Peng T. Ong, co-founder and managing partner of Monk’s Hill Ventures, said, “Access to affordable tertiary education remains a huge pain point in Southeast Asia where the cost is nearly double then the average GDP per capita. ErudiFi is tackling an underserved market that is plagued with high-interest rates by traditional financial institutions and limited reach from peer-to-peer lending companies.”
ErudiFi’s Series A shall be used on hiring for its product and engineering groups and to increase in Indonesia and the Philippines.