Study Abroad platform, LeverageEdu, has officially launched Fly Finance, its financial services business which was started earlier this year. The company has received its FFMC license from the RBI, founder, CEO, Akshay Chaturvedi, said.
According to the official statement, Fly Finance primarily focuses on student remittances and education loans. The company has hit a transactions processed value (TPV) of Rs 135 crore on forex, while facilitating education loans worth over Rs 280 crore this Fall Intake. Rachit Juneja, previously with Blume Ventures, operationally leads the unit, the statement added.
“We have been building finance ground-up not as a business but as a “student need” that can enhance our customer’s experience – first starting with ‘scholarships’ and then formally launching lending and forex this year,” Chaturvedi said.
Further the statement mentioned, LeverageEdu has opened access to a pool of over $1.6 billion in financial aid to over 100,000 students within its community, housed on the “Study Abroad with Leverage Edu” mobile app. It also launched a Rs 5 crore scholarship from its own corpus last year, extended to Rs 7 crore this year.
“We help students band together as a group and negotiate reduced student loan rates by essentially acting as a collective bargaining unit with banks”, Chaturvedi added.
On the Scholarships front, LeverageEdu is targeting to unlock more than $1 billion in declared scholarship money across the next couple intakes. Foreign Remittance is where LeverageEdu aims to doube down. Speaking on the same, Chaturvedi said, “a solid forex business helps us unlock a lot of what we want to do in the future, as this student graduates, looks for a job, pays rent, and so on. Till last quarter, we were primarily doing B2C forex through third-party license holders, growing at 50-70% month on month; now, we have also begun approaching this from the University-end, helping institutions with fee acceptance across borders.” The company is aiming to close FY23 with $200 million annualised TPV, the statement noted.
Meanwhile, the startup further aims to launch a debit card focused on students going to the UK, which has been its primary destination market, later this year. Here, it will make money through interchange fees, as per the statement. In the future, Fly by LeverageEdu aims to create a suite of products that students can pay to access, including more hands-on advisor consultations or personalised banking features.
“You could think of us as a boutique Global Bank for Immigrants over the next few years, we want to do whatever it takes to get them to a better life,” Chaturvedi said.