Leap, which handles LeapScholar and LeapFinance, is one of the largest study abroad platforms for Indian students, has secured $55 million in fundraising rounds from a handful of investors. Owl Ventures backed the Series C fundraising round.
Harvard Management Company, as well as returning investors Jungle Ventures and Sequoia Capital India, also participated in the round. The investment comes within six months after Leap garnered $75 million in Series B fundraising anchored by Jungle Ventures. This startup has already raised more than $75 million in total funding.
Leap, which has offices in San Francisco and Bengaluru, assists Indian students in discovering a suitable college abroad and provides zero-collateral, total study cost, and dollar loans to students. The startup also offers end-to-end services, including counseling, visas, education loans, and other financial products, all designed to appeal to students interested in international education and career.
Leap was founded in 2019 by Arnav Kumar and Vaibhav Singh, will leverage the raised capital to maximize the company’s service portfolio to students across Southeast Asia and the Middle East and North Africa (MENA) regions, according to the company. Leap also plans to expand its product offering and offer credit cards and insurance to overseas students.
It primarily offers access to institutes in the United States, Canada, the United Kingdom, and Australia. It also focuses on offering Leap Finance Inc. collateral-free school loans with interest rates ranging from 8.25 percent to 10.25 percent. During the period of fund disbursement, the company charges a 2% processing fee for loans. Leap also provides an international bank account through which students can obtain a valid US bank account and debit card while in India, with no fees and the best exchange rates.
Leap has structured an ecosystem of over 1 million students who counsel and explore possibilities with one another. Over the last 18 months, the startup has guided nearly 60,000 students in their study abroad journeys, with the fall season being its busiest. Last month, the company also stated its intention to employ 500 individuals in India and abroad by the end of the year to deepen its product and technology stack.
Leap Co-founder, Vaibhav Singh commented on the development saying, “We have seen an unprecedented demand from students to move abroad this year as international borders open post-Covid. Our community-led approach coupled with a comprehensive product suite for all international student needs is truly differentiated. Not surprisingly we have seen explosive growth.”
The startup directly competes with some other educational loan startups including Eduvanz, which secured Rs 100 Cr in Series B funding last month from JuvoVentures, Sequoia Capital, and Unitus Ventures.