Based in Singapore, ErudiFi desires to assist extra college students in Southeast Asia keep at school by giving them inexpensive financing choices. The startup introduced right now it has raised a $5 million Series A, co-led by Monk’s Hill Ventures and Qualgro.
ErudiFi at the moment works with greater than 50 universities and vocational colleges in Indonesia and the Philippines. Co-founder and chief government officer Naga Tan instructed TechCrunch that college students in these international locations have restricted financing choices, and sometimes depend on associates or household, or casual payday lenders that cost excessive rates of interest.
To present extra accessible financing choices, ErudiFi companions with accredited universities and colleges to supply backed installment plans, utilizing tech to scale up whereas protecting prices down. Interest charges and compensation phrases range between establishments, however could be as little as 0%, with loans payable in 12 to 24 months.
By offering their college students with inexpensive financing plans, ErudiFi can improve retention charges at colleges, serving to them hold college students who would in any other case be pressured to drop out due to monetary points.
Tan mentioned ErudiFi’s worth proposition for instructional establishments 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 assertion, Peng T. Ong, co-founder and managing accomplice of Monk’s Hill Ventures, mentioned, “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 will likely be used on hiring for its product and engineering groups and to increase in Indonesia and the Philippines.