• GyanDhan has raised Rs 50 crore from Classplus and Pravega Ventures to expand into Tier II and III cities and boost its tech stack.
  • Since 2016, the startup has facilitated over Rs 7,000 crore in education loans and aims to grow that to Rs 18,000 crore in three years.

New Delhi-based education financing startup GyanDhan has raised Rs 50 crore in a fresh funding round led by edtech player Classplus and venture capital firm Pravega Ventures. The funding aims to boost the company’s footprint in India’s underserved Tier II and III cities and strengthen its credit infrastructure amid global uncertainty in the education sector.

The capital infusion comes as international student mobility slows due to currency fluctuations, stricter visa norms in the U.S., U.K., and Canada, and macroeconomic challenges.

India’s education loan penetration remains under 20%—far below the 45 %+ seen in developed countries like the U.S.

“The rising cost of higher education—both in India and overseas—is intensifying pressure on middle-class family budgets,” GyanDhan said in a statement.

Founded in 2016 by IIT alumni Ankit Mehra and Jainesh Sinha, GyanDhan operates a hybrid model with both a loan marketplace and a non-banking finance company (NBFC).

To date, it has facilitated over Rs 7,000 crore in education loans for Indian students and now plans to raise that to Rs 18,000 crore over the next three years.

The startup will channel the new capital into scaling up distribution via local consultants, strengthening its SaaS platform and student-financing workflows, and expanding community engagement efforts such as financial literacy programs and student seminars.

Currently present in 30 cities, GyanDhan plans to expand to over 50 and increase partnerships with banks and NBFCs from 15 to 30.

“With this backing, we’re doubling down on building the infrastructure and technology that will unlock educational opportunities for millions of families across India,” said Ankit Mehra, cofounder and CEO of GyanDhan.

The startup is also eyeing adjacent verticals, including financing for upskilling, executive education, and alternative credentials, in response to India’s changing job market.

Edited by Annette George