EduFi, Pakistan’s first study now pay later digital platform, has successfully raised $6.1 million in a pre-seed funding round.
The investment, led by Zayn VC and joined by Palm Drive Capital, Deem Ventures, Q Business, and several angel investors, aims to support EduFi’s groundbreaking artificial intelligence-driven study now pay later (SNPL) lending platform and mobile app.
EduFi aims to address Pakistan’s challenges of high poverty levels and low literacy rates through its innovative fintech platform.
EduFi has strategically launched its platform in Pakistan, where traditional student loan products are absent. Instead, individuals resort to high-interest personal loans with lengthy processes, highlighted Aleena Nadeem, the founder and CEO of EduFi, in an interview with TechCrunch.
The startup, operating for two years, has already formed partnerships with 15 universities in Pakistan, providing its app to around 200,000 students pursuing undergraduate, Master’s, and PhD. EduFi facilitates the payment of fees directly to the colleges upon approval of student loans.
“This is a significant step towards achieving financial inclusion for middle and low-income families. In Pakistan, families spend more than 50% of their income on their children’s education, which has become increasingly challenging due to inflationary pressures” said Faisal Aftab, General partner and Founder at Zayn VC.
He emphasized that EduFi’s groundbreaking approach will not only relieve this financial burden but also empower families to make meaningful investments in the future of their children.
The company, striving to transform the traditional banking approach with high-interest rates and complex application processes, plans to use the pre-seed capital to reach more customers, optimize its platform, expand to neighbouring countries, and introduce additional fintech products, including student credit cards.
