Fintech startup Leap Finance to raise $100 million at a valuation of $1 billion in its series E funding  round 

Leap Finance is a fintech platform that offers education loans to students pursuing higher education overseas. The startup announced its plans to raise 100 million USD in its new funding round. The source close to this deal told Entrackr that the company is looking for a fresh funding round almost two years after its last Series D funding round. The round is most likely to have the participation of three new and some existing investors. Here we are talking about Fintech startup Leap Finance to raise $100 million at a valuation of $1 billion in its series E funding round. 

The startup is likely to become a unicorn after this round. The company previously secured $75 million in 2022 during its Series D funding round from Owl Ventures with the participation of Peak XV partners Steadview, Jungle Ventures, and Paramark Ventures. The company reported its valuation during this round around $850 to $900 million.

The deals and agreements of the new funding rounds are still not known. The company aims for a $1.2 billion valuation during the series E round. The startup plans to use the investment to scale its operations, enhance its platform, improve its services, strengthen its security, and meet general purposes. This round is rumored to be a mix of primary and secondary capital. After this round, some early and angel investors may partially or fully leave the company. 

The startup offers educational loans to students studying or pursuing education abroad. The platform also provides test preparation applications for overseas education such as IELTS, SAT, and TOEFL. The startup also enables admission and visa counseling with financial offerings through Leap Finance, Yochke, and LeapScholar. This fintech platform also assists with global bank accounts, money remittances, and credit cards. Leap Finance raised $175 million since its inception till the series D  round. The company claims to have disbursed loans to more than 3,000 students. The startup mainly focuses on the US, UK, Australian, and Canadian institutions. 

The fintech startup funds up to 100% of the cost of attendance, including tuition fees, books, rooms, transportation, and other personal expenses for students studying abroad. In addition, the firm does not ask for any immovable collateral. The company wants to revolutionize education-based loaning services locally and globally. The startup data intelligence platform, The Edible, mentioned that the top competitors of Leap Finance, including Financepeer, Auxilo, Avanse Financial, Graquest, Mpower Financing, Propelled, and Eduvanz, altogether raised $500 million in one year. 

Conclusion

Leap Finance is an education-based Indian fintech startup that plans to raise $100 million in its new funding round. The company plans to hold its latest round at a valuation of $1.2 billion. The startup offers education-related loans to students pursuing higher education in foreign countries, especially in the UK, US, Canada, and Australian institutes. The startup has secured around $175  million since its inception, including $75 million raised in its series D funding round led by Steadview,  Owl Ventures, Paramak Ventutes, and Peak XV partners. The company claims to have provided education loans to around 3,000 students.

athulya V

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