GyanDhan, a New Delhi-based education financing startup, has secured ₹50 crore in fresh funding from edtech firm Classplus and venture capital investor Pravega Ventures. This new investment will help the company expand deeper into India’s tier II and III cities, fortify its credit infrastructure, and enhance its technology capabilities—all while navigating a challenging global education environment.
Addressing a Pressing Need Amid Global Slowdown
GyanDhan’s funding comes at a time when the international education sector faces considerable headwinds. The startup recognizes how currency volatility, restrictive visa rules in key countries like the U.S., U.K., and Canada, and global economic uncertainty have temporarily slowed the growth of student mobility. Yet, Indian students continue to aspire for quality education, both at home and abroad.
Despite the rising demand, India’s education loan penetration remains alarmingly low. GyanDhan has identified this gap as a major opportunity. While developed countries like the U.S. report over 45% education loan penetration, India lags behind at under 20%. The founders believe this discrepancy creates an urgent need for accessible and efficient financing models.
“The rising cost of higher education—both in India and overseas—is intensifying pressure on middle-class family budgets,” GyanDhan noted. The startup aims to ease this burden by offering smarter, more inclusive financing options.
A Hybrid Model That Scales With Demand
Founded in 2016 by IIT alumni Ankit Mehra and Jainesh Sinha, GyanDhan runs a hybrid model. It operates both as a loan marketplace and as a lender through its own non-banking finance company (NBFC). This dual structure allows the company to offer flexible financing options while controlling the borrower experience end-to-end.
Over the years, GyanDhan has facilitated more than ₹7,000 crore in education loans for Indian students pursuing higher education in India and abroad. With fresh capital in hand, the startup plans to scale this figure dramatically. Its goal is to reach ₹18,000 crore in total loan originations within the next three years.
The company has built partnerships with 15 leading banks and NBFCs, providing a wide range of loan products to match student needs. GyanDhan aims to double its lender network to 30 partners over the coming year, increasing access and competitive offerings for borrowers.
Expanding Into Bharat: Reaching Tier II and III Cities
GyanDhan will channel the newly raised funds toward expanding its physical and digital footprint in India’s underserved regions. Currently active in 30 cities, the startup intends to grow its presence to over 50 cities within the next year.
To achieve this, GyanDhan will scale distribution through local consultants and education counselors. These regional teams will act as trusted advisors, helping families navigate the loan process and understand the benefits of formal education financing. By engaging local communities directly, GyanDhan aims to build trust and boost adoption where awareness of education loans remains low.
Additionally, the company will roll out more student-facing events such as seminars, webinars, and financial literacy programs. These initiatives aim to demystify the financing process and empower students with the information they need to make informed decisions about their futures.
Technology-First Approach to Education Financing
The company’s growth plans also include significant investments in its proprietary technology platform. GyanDhan will enhance its SaaS-based loan processing system, which currently powers end-to-end workflows for both borrowers and lending partners.
The platform uses machine learning models to evaluate student profiles, estimate repayment capacity, and recommend personalized loan offers. By making the credit assessment process more accurate and scalable, GyanDhan ensures that deserving students gain access to funds without delay.
The company also plans to deepen its data analytics infrastructure to help predict loan defaults, track repayment behavior, and refine its underwriting criteria. This will allow GyanDhan to offer more competitive terms while managing risk effectively.
“Technology plays a critical role in democratizing access to education financing,” said Ankit Mehra, cofounder and CEO of GyanDhan. “With this backing, we’re doubling down on building the infrastructure and tools that will unlock educational opportunities for millions of families across India.”
Strategic Support From Classplus and Pravega Ventures
Edtech firm Classplus and VC firm Pravega Ventures led the current funding round. Their strategic backing signals strong investor confidence in GyanDhan’s mission and business model.
Classplus cofounder and CEO Mukul Rustagi highlighted the startup’s potential, describing education financing as “a tough but massive TAM.” He noted GyanDhan’s ability to stay resilient and focused in a complex market.
Pravega Ventures also expressed strong alignment with GyanDhan’s vision, especially in terms of combining fintech innovation with social impact. By bridging the affordability gap in education, GyanDhan continues to build a mission-driven brand with long-term relevance.
Eyeing the Future: Beyond Traditional Degrees
While the company’s core focus remains student loans for higher education, GyanDhan has begun exploring adjacent opportunities in response to evolving market needs. These include financing for professional upskilling, executive education, and alternate credentialing programs.
As the Indian job market shifts toward continuous learning and specialized skills, demand for non-traditional education paths continues to grow. GyanDhan sees these trends as natural extensions of its mission to make quality education more accessible.
The startup will evaluate new lending products for working professionals and lifelong learners, especially those pursuing courses in tech, business, healthcare, and digital skills. By expanding its product portfolio, GyanDhan plans to become a comprehensive education financing platform for all age groups and learning needs.
Conclusion: Driving Social Mobility Through Smart Credit
GyanDhan’s latest funding round marks a critical milestone in its journey. As the global education landscape continues to evolve, the startup remains committed to supporting students with timely, accessible, and reliable financing options.
By focusing on underserved markets, investing in local teams, and leveraging technology, GyanDhan is addressing real pain points in the Indian education ecosystem. Its mission goes beyond business—it’s about enabling dreams, transforming lives, and driving social mobility through education.
With strong support from Classplus and Pravega Ventures, the company is poised to scale new heights and become a key player in India’s rapidly growing education finance sector. As it brings more students into the fold and opens doors to new learning opportunities, GyanDhan reinforces its core belief: no dream should remain unfulfilled due to lack of funds.