Leap Finance, a fintech platform aiding Indian students in funding their overseas education by providing education loans, is in talks to raise $70-100 million in a new round. According to sources, this fundraising effort could elevate Leap Finance’s valuation to $1-1.2 billion, pushing it into the unicorn club.
Leap Finance, based in San Francisco, has transformed the landscape for Indian students aspiring to study abroad. The platform offers comprehensive services, including education loans, test preparation apps for IELTS, TOEFL, and SAT, admissions, and visa counseling. Additionally, it provides international bank accounts, credit cards, and money transfer services.
Leap Finance’s last major funding round, Series D, was over two years ago, raising $75 million. That round, led by Owl Ventures with participation from Steadview, Paramark Ventures, Jungle Ventures, and Peak XV, valued the company at $850-900 million. However, the upcoming Series E round targets a valuation between $1 and $1.2 billion.
Leap Finances New Investors and Expansion
Sources reveal that Leap Finance is currently in discussions with three new investors. The terms of the deal are still being finalized, with a lead investor expected to be determined in a few weeks. This round will include primary and secondary capital, allowing some early investors, including angels, to make partial or complete exits.
Leap Finance’s growth since its last fundraising has been substantial. The firm’s focus on educational loans for overseas studies has resonated with Indian students, driving significant investor interest. Data from TheKredible indicates that Leap Finance and its competitors have collectively raised nearly $500 million over the past two years.
Future Prospects
Despite challenges in the EdTech sector, platforms like Leap Finance have thrived due to the strong demand for overseas education. The company has funded over 3,000 students since 2021, primarily focusing on US, Canadian, UK, and Australian institutions.
The preference for studying abroad for better exposure continues to fuel growth for companies like Leap Finance. TheKredible reports that firms in this space have secured substantial funding, with competitors such as Auxilo, Avanse Financial, Financepeer, Propelld, Grayquest, Mpower Financing, and Eduvanz raising significant amounts.
As Leap Finance approaches a pivotal milestone, the upcoming Series E round will determine its trajectory. The company’s ability to secure new investors and achieve unicorn status underscores the growing importance of financial solutions for overseas education.
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