It has been reported that Leap Finance, a platform that has been in the limelight with its aid to Indian students funding their education abroad, is now in discussions to raise a whopping $70-$100 million. According to sources close to the deal, this new round of fundraising might catapult Leap Finance into that coveted unicorn club, taking the valuation above $1- $1.2 billion.
PC: The Economic Times
Leap Finance is not just any kind of fintech startup. This San Francisco-registered company has become a game-changer for Indian students who have been eyeing foreign shores to fulfill their study abroad dreams. It provides one-stop services: from education loans to test preparation apps for IELTS, TOEFL, and SAT. Not only this but also admissions and visa counseling, along with opening international bank accounts, credit cards, and even money transfers.
Now, exactly, it’s a bit over two years since Leap’s last major fundraising round, their Series D, in which they raised $75 million. That round was led by Owl Ventures and had participation from big names such as Steadview, Paramark Ventures, Jungle Ventures, and Peak XV. At that time, Leap’s valuation was hovering around the $850-900 million mark. Fast forward to today, and it seems Leap is gunning for more: A reported valuation target between $1 to 1.2 billion in this Series E round.
Sources close to the matter have revealed that Leap is in talks with three new investors. While the terms are still being fleshed out, a final lead for this new round should be set within a few weeks. Most interestingly, it will include both primary and secondary capital, meaning some early investors, including angels, may take a partial or full exit.
Well, Leap has grown multifold since their last fundraising. How the company was doing, fastically well. It attracted many investors, some even internal. The educational loans for overseas studies the firm focused on seemed to strike a chord, as Indian students strongly show affinity toward studying abroad to gain better exposure. Indeed, in the last two years, Leap and its rivals raised almost $500 million, according to data from TheKredible.
Though it has been a grim two years for many EdTech startups, some have still been able to snag decent funding, like Leap Finance. Their success is hence representative not only of their financial solutions but indeed the growing demand towards overseas education.
Leap Finance is on the cusp of reaching a big milestone, so it’s going to be very interesting to see how this new funding round shapes up. So stay tuned for more updates and keep dreaming big!
