Located in Singapore, ErudiFi seeks to help students stay in school in Southeast Asia by offering students affordable financing options. The startup announced today that it has raised $ 5 million Series A, led by Monk Hill Ventures and Qualgro.
ErudiFi currently works with more than 50 universities and business schools in Indonesia and the Philippines. Co-founder and CEO Naga Tan told ClearTips that students in those countries have limited financing options, and often rely on friends or family or informal payday lenders that charge higher interest rates.
To provide more accessible funding options, Erudify Partners with accredited universities and schools to offer subsidized installment plans, using technology to scale up while reducing costs. Interest rates and repayment terms vary between institutions, but can be as low as 0% with loans due in 12 to 24 months.
By providing affordable financing schemes to its students, ErudiFi can increase retention rates in schools, which will help them keep students who would otherwise be forced to leave due to financial issues.
Tan said that Erudify’s value proposition for educational institutions is “able to offer a data-driven financing solution that helps with student recruitment and retention. Students also benefit greatly because our product is one of the few Is, if not the only, affordable financing option that they have access to. “
Peng T, co-founder and managing partner of Monk Hill Ventures. Ong said in a press statement, “Access to affordable tertiary education remains a major pain point in Southeast Asia, where costs are nearly double then average GDP per capita. ErudiFi is tackling an underscore market that suffers from high-interest rates by traditional financial institutions and limited access from peer-to-peer lending companies. “
ErudiFi’s Series A will be used to hire for its product and engineering teams and expand into Indonesia and the Philippines.