EduFi, Pakistan’s pioneering “study now, pay later” (SNPL) digital platform, has successfully concluded a pre-seed funding round, raising an impressive $6.1 million. The funding, spearheaded by Zayn VC and supported by investors such as Palm Drive Capital, Deem Ventures, Q Business, and various angel investors, is earmarked for enhancing EduFi’s innovative AI-driven lending platform and mobile application.
EduFi, founded with a mission to tackle Pakistan’s challenges of high poverty rates and low literacy, is set to revolutionize education finance. In a country where traditional student loan products are notably absent, EduFi aims to fill the void by offering an alternative to high-interest personal loans, which often come with cumbersome application processes.
Aleena Nadeem, the Founder and CEO of EduFi, highlighted the absence of conventional student loan products in Pakistan. She noted that, in the absence of such products, individuals often resort to high-interest personal loans, leading to prolonged and complex procedures. EduFi aims to streamline this process through its digital platform.
The two-year-old startup has strategically partnered with 15 universities in Pakistan, extending its services to approximately 200,000 students pursuing undergraduate, master’s, and PhD programs. EduFi’s platform facilitates direct payment of fees to partner colleges upon the approval of student loans.
Faisal Aftab, General Partner and Founder at Zayn VC, emphasized the significance of EduFi’s approach in addressing financial challenges faced by middle and low-income families in Pakistan. He stated that families in the region allocate more than 50% of their income to their children’s education, posing a significant financial burden. EduFi’s innovative platform, according to Aftab, not only alleviates this burden but also empowers families to make meaningful investments in their children’s future.
The recently secured pre-seed capital is expected to propel EduFi to reach a wider customer base, optimize its platform, and introduce additional fintech products. Plans include expanding its operations to neighbouring countries and introducing student credit cards. EduFi’s ambitious agenda seeks to transform the conventional banking approach associated with high-interest rates and intricate application processes.