Introduction
Indian Education Sector
Education Sector
SchoolHigher and
Professional Education
Test Preparation/
Coaching ClassesVocational Training
India AbroadPre-School K-12 Skilling Up-Skilling
Online Education
Eduvanz Loan Product
Indian Education Sector: Market Size
Pre-Schools
Estimated Size1~US$ 1.9 bn
Estimated Size1~US$ 44.9 bn
Estimated Size1~US$ 22.5 bn
Estimated Size~US$ 31.6 bn
Estimated Size1
~US$ 4.2 bnEstimated Size~US$ 19.6 bn
K-12 Higher Education Test Preparation Vocational Education Online Education
~117mnPopulation in 0-4 years of
age group
~2.5%Net Enrolment Ratio
~0.045mnPre-schools(Organized)
~$643 Average fees per year
~0.35mnSchools under Private-Un
aided category
~700Students per school
~$430 - ~$4,286
Average fees per year
~142mnPopulation in 18-23 years
of age group
~0.3mnStudents enrolling for
foreign education
~464mn Target population
13%Expected CAGR for next 5
years
~0.0115MnNumber of Vocational
Training Institutes
~2.8mn Trainees per year
~45% Users pay through
instalments
~31%Internet penetration
~409mn Internet users
~$71-$2,143Subscription fees range
~1.57mn Paid users
~26% Students take private
coaching in India
~25mn Students going to class XI
and XII
~0.039mnNumber of colleges
~5Centres per institute
~$1,429 - ~$7,143
Average course fees range
Advanced Training Inst.
Pvt. School excl. Int. School
Int. School
~81 mnStudents in Private School
~$7,857 - ~$35,714
Average fees per year
IndianEducation
ForeignEducation
Vocational Centres
Assumption $1 = INR 70
Background Key Statistics
• Eduvanz is a new age, technology led NBFC which was established in early 2017 and received the NBFC license in January 2018
• Provides Skilling and Upskilling loans resulting in No/Low Cost EMIs for the Borrower
• Works with Training Institutes, leading Corporates and Industry Bodies to provide No/Low Cost financial assistance for employment generation, upgradation
• Building Innovative Technology platform addressing the need of borrower and institutes
• Creating new eco-system involving:
Institute <--> Eduvanz <--> Borrower
Team
• Co Founded by IIT/IIM Alumnus with 60+ years of cumulative experience in Education, Technology & BFSI Sectors
• Worked in companies like HDFC, Fullerton, Deutsche Bank, Nomura, Accenture, Birla Sun Life
• Funded by Leading Global VC and Impact Investors
• 100+ team across India with offices in Mumbai ,Delhi, Bangalore, Hyderabad
Technology & Operational Structure Loan Offering
20,000+Applications received
Avg. ticket size of
~$2,000 with average tenure of
~15 months
~27 yearsAverage age of
Applicants
300+ Cities
Presence across
20 States Covering over
25+ Skill Industries
200+ Institute /Corporate
Partnerships
Skilling Loans
Online CSR Activity
Operational Structure Technology Structure
Collection Muscle Across 600+ Locations
Strong Credit Assessment Methodologies
In-house LMS/LOS Platform
Instant Credit Assessment
Digital Signing and Quick Disbursement
Paperless Application
~52%Salaried Applicants
~50%Applicants with CIBIL
Score > 700
~70%Applicants being
Graduate or Higher
Institute Partnered
Eduvanz: Quick snapshot Status
1
School Finance2
Pre-School K-12
Increasing number of Loan Applications and AUM
Assumption $1 = INR 70
3 14
58
133
255
402
-
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
FY19P FY20E FY21E FY22E FY23E FY24E
AUM Growth ($ Mn)
Eduvanz: Loan Products
Skill Loans Upskilling Loans
Eduvanz partners with skill institutes to provide loans to students looking for course enrollment
Student
Institute
Eduvanz partners with certification institutions to pay the certification fees on behalf of individuals
who are either employed or will get employed by the partnered Corporate
Institute
Eduvanz pays the fee to institute
Institute
Eduvanz pays the fee to institute
Working professional
PartnersPartners
• Pays EMI to Eduvanz• Acquires Skill• Gets Employed
• Pays EMI to Eduvanz• Upskill• Increase in Salary/ Promotion/ New Industry
• Interest Free Loans• Credit Guarantee provided by Institutes• Co-borrower Required
• Interest Free Loans or Hybrid or Interest Only Loans• Pro Rata Guarantee by institutes• Working Individual 0%
Eduvanz – A differentiated play in Education Financing
Primary focus on Loans to Schools/Institutes
High Ticket Size Low Ticket Size
Vocational Education
Pre-Schools
K-12
Test Preparation
Higher Education
No. of Students
~US$4.2 bn
~3mn Students
Public and Private Sector Banks
~US$ 1.9 bn
~US$44.9 bn
~US$31.6 bn
~US$ 22.5 bn
~3mnStudents
~81mnStudents
~111mnStudents
~37mnStudents
Foreign and Indian Education
Personal Loans NBFCs
Highly CompetitiveHigher NPAs
Long Tenor Product
Medium Ticket SizeINR 2 LakhINR 10 LakhINR 25 LakhINR 1 Crore
Market Size
Acquisition platform in the space
Small players in the space
Eduvanz focuses on Large Market segment where very few
competitors operate
• TEAM - 60+ years of cumulative experience in Education, Technology & BFSI Sectors
• TECHNOLOGY – Innovative tech platform serving the need of institute as well end borrower with 0 touch processing
• TIMING – 65% of Indian population below 35 years showcasing massive need of financing for education and skill building
• RISK MANAGEMENT – only NBFC to have risk algorithm specifically created for education sector
• OPPORTUNITY - currently no FI institute in India is looking at education as a dedicated lending space giving us a lead in this multi billion dollar space *
Eduvanz vs Other Financial Organization
BanksNBFC -
TraditionalFintech Eduvanz
Product TypeHigher Education + Study
AbroadStudy Abroad Personal Loans
Skilling +Upskilling + Online Education + K-12
Credit Risk Management
CIBIL Based Scoring Collateral Dependency
CIBIL Based Scoring Institute needs to be Tier -1
Alternate Data on Applicant + CIBIL
Institute / Industry/ Course Rating + Alternate Data on
Applicant + CIBIL + Demographic Score
Interest Type Interest only Interest only Interest + SubventionInterest + Subvention +
Hybrid
Credit ProtectionNo: Collateral is used for
the same Not Applicable : Collateral is
used for the same No Yes
Institute Tech Integration
No No Limited Yes
Serviceability Low Medium High High
and….. ……..
*Most of the NBFC’s and Banks continue to focus on study abroad or Tier -1 higher education financing
Varun ChopraCEO
10+ years experience across Banking, Outsourcing and Client Management worked with • Deutsche - Global Credit Desk• Nomura – VP CMT• Computer Eng/ MBA
(IIT-Madras)
Atul SashittalCTO
25+ years experience across Information Technology, Project Management, Communications, Network Management, Application development, implementation & support, IS security and Audit with• Angel Broking – Head IT• CLSA India – Head IT• Birla Sunlife Securities
Raheel ShahCBO
10+ years experience across Edutech entrepreneurship, Strategy, sales, retail performance, business turnaround, across industries • Accenture India Pvt. Ltd.• Chemical Eng/ MBA
(IIM-Ahmedabad)
Sukesh TandonCRO
18+ years experience across credit policy and collection strategy roles with leading organisations like • Citi – Credit Policy Auto, PL, CD• HSBC –Collection & Retail Assets• Fullerton HDFC bank – Risk & Portfolio
Management across products
Mr. Arvind Mathuris a pioneer of private equity
and venture capital in theAsia-Pacific region
Mr. Amit Ratanpal serves as a Founder and
Managing Director at Blinc Advisors
Mr. Sandip Ghoseis the Director of the NISM,
an educational initiative of the SEBI
Mr. Sudhir Khanna is a Senior Banking Professional
Under Commercial Banking space for various BFSI
Management Team and Advisors
Management Team
Board Of Advisors
How the Credit Scorecard Works
A simple Risk Score is created for each application
0
100
200
300
400
500
600
700
800
Final Score – 500/600 (Low Risk )
Final Credit Risk Score out of 600 will be provided for each application , with high score showing lower chance of credit default
Financial Applicant
Industry/Institute/Course
Score – created using own
propriety algorithm which tracks
16 different sector and each
institute basis placement criteria's,
company performances, salary
expected, regulations etc.
Mobile Score -• Behaviour Score - calling history,
browser history• Financial Score – created using
smses• Social Score - interaction with
social platform• Location Score – presence of
individual/device at locations marked as office/home
Demographic Score –
score assigned to each
applicant basis their
demographic profile and the
portfolio behavior
Banking Score –
creating using financial
documentation and
data provided for
financial applicant
Bureaus Score –Traditional score given basis data the multi bureau score
Industry / Institute Score
Mobile Score
DemographicScore
Banking Score
BureauScore
Technology Platform
• Digital Application via Website• Application through Mobile
App• Instant IPA – IMDBB Algo• Instant Eligibility through
Institute Dashboard• Quick EMI Option on Partnered
Website
Lead Onboarding Document Verification Credit Appraisal Loan Booking Loan Repayment
• Digital document verification• API based bank statement
fetching• Documentation scanning
and upload flexibility
• Automated credit appraisal• Algorithm based
Underwriting• Flexibility in product
offering• Automated Dedupe and
Fraud Detection• Multi bureau connect
• Paperless loan onboarding
• On click NACH Setup• Instant Disbursement• Real time communication
to partnered institution
• Automated EMI Deduction• Automated Pre Due Alerts for EMI • Real time 360 view of portfolio• Instant EMI payment settlement• Flexibility in loan repayment
Eduvanz mobile app replicating the digital desktop journey E2E
Key Features
Scalability & Mobility Intelligent, Agile & Efficient 100% Digitized Experience Seamless External Party
Integration
Next 5 Years
B2C Focus – Corporate , College partnerships
Expansion across similar global markets
Initiate lending for PG & above Courses
K-12 School Fee, Test Prep – online /offline
courses
E2E paperless loan disbursement with
STP Model
Enabling Profile, Skill & Institute mapping for
individuals
AI driven risk algorithm with predictive analysis
Integration with global players across Education
Finance, Vendors, etc.
Platform integration with Institute for seamless admission & student
progress tracking
Vernacular Support
AI – Artificial Intelligence, PG - Post Graduate, STP - Segmentation, Targeting and Positioning model
Product
Tech
Awards and Accolades
Part of PMO/Niti Aayog Financial Inclusion C2C team
Winner of Wharton Startup Challenge 2018
Part of Inc42 And IAMAI Release List Of 30 Emerging Fintech Startups In India
Winner of India Fintech Forum as IFTA 2018 Financial Inclusion Initiative
High social impact by providing equal financial opportunities to all
Problems faced by Borrower/Applicant and Institutes
Creating an ecosystem where Lender, Institute and the Student can come together helping each other
How Eduvanz is making a difference by catering to these problems
● Chance of getting loan is too much dependent on CIBIL● Loan for attaining a specific skill is not entertained by Banks and already
well established NBFCsStudent
Institute
● Technology integration with the Institutes● Institutes are not able to provide Finance as a lever to increase enrolments
despite offering discounts to increase capacity utilizations
● Tech Platform: Tech enabled platform with advanced credit scoring mechanism
● Personalized Loans: Customized loan solutions based on the unique risk mitigants and
financial solutions for each Partner
● Beyond conventional CIBIL: Loan provided to first time borrower with low CIBIL by running a
background check including Social Score, Education Score, etc. and by taking
Parents/Guardians as guarantor
● Organizational memory and DNA to uniquely understand Education, Finance, Technology -
and marry all three to excel at the intersection of these three
Institute in Tier 1 city
Completing the course to become a professional
Going back to his/her home town to start
their careers
Student coming from Tier 2/3/4 city
Institute in Tier 1 city
Completing the course to acquire a new skill/improve existing skill
Working professional from Tier 1/Tier 2 city
Move towards better earning opportunities
Thank You