The Singapore-based startup has launched an artificial intelligence-powered study now, pay later (SNPL) lending platform and its mobile app in Pakistan, a country that does not have student loan products as a category; instead, users take personal loans with high interest and lengthy process, Aleena Nadeem, founder and CEO of EduFi told TechCrunch.
EduFi, a fintech startup that enables financially strapped students to secure loans for their education, has raised $6.1 million in a pre-seed round led by Zayn VC with participation from Palm Drive Capital, Deem Ventures, Q Business and angel investors.
EduFi wants to address the country’s two issues — high poverty levels and low literacy rates — via its fintech platform. In Pakistan, about 40 percent of the students attend private school due to public schools’ poor quality, resulting in spending more than $14 billion on their education every year.
The two-year-old company has already had partnerships with 15 universities, allowing the app to be available to about 200,000 students who must pay their fees for undergrad, Master’s and PhD across Pakistan.