Introduction

Indian Education Sector

Education Sector

SchoolHigher and

Professional Education

Test Preparation/

Coaching ClassesVocational Training

India AbroadPre-School K-12 Skilling Up-Skilling

Online Education

Eduvanz Loan Product

Indian Education Sector: Market Size

Pre-Schools

Estimated Size1~US$ 1.9 bn

Estimated Size1~US$ 44.9 bn

Estimated Size1~US$ 22.5 bn

Estimated Size~US$ 31.6 bn

Estimated Size1

~US$ 4.2 bnEstimated Size~US$ 19.6 bn

K-12 Higher Education Test Preparation Vocational Education Online Education

~117mnPopulation in 0-4 years of

age group

~2.5%Net Enrolment Ratio

~0.045mnPre-schools(Organized)

~$643 Average fees per year

~0.35mnSchools under Private-Un

aided category

~700Students per school

~$430 - ~$4,286

Average fees per year

~142mnPopulation in 18-23 years

of age group

~0.3mnStudents enrolling for

foreign education

~464mn Target population

13%Expected CAGR for next 5

years

~0.0115MnNumber of Vocational

Training Institutes

~2.8mn Trainees per year

~45% Users pay through

instalments

~31%Internet penetration

~409mn Internet users

~$71-$2,143Subscription fees range

~1.57mn Paid users

~26% Students take private

coaching in India

~25mn Students going to class XI

and XII

~0.039mnNumber of colleges

~5Centres per institute

~$1,429 - ~$7,143

Average course fees range

Advanced Training Inst.

Pvt. School excl. Int. School

Int. School

~81 mnStudents in Private School

~$7,857 - ~$35,714

Average fees per year

IndianEducation

ForeignEducation

Vocational Centres

Assumption $1 = INR 70

Background Key Statistics

• Eduvanz is a new age, technology led NBFC which was established in early 2017 and received the NBFC license in January 2018

• Provides Skilling and Upskilling loans resulting in No/Low Cost EMIs for the Borrower

• Works with Training Institutes, leading Corporates and Industry Bodies to provide No/Low Cost financial assistance for employment generation, upgradation

• Building Innovative Technology platform addressing the need of borrower and institutes

• Creating new eco-system involving:

Institute <--> Eduvanz <--> Borrower

Team

• Co Founded by IIT/IIM Alumnus with 60+ years of cumulative experience in Education, Technology & BFSI Sectors

• Worked in companies like HDFC, Fullerton, Deutsche Bank, Nomura, Accenture, Birla Sun Life

• Funded by Leading Global VC and Impact Investors

• 100+ team across India with offices in Mumbai ,Delhi, Bangalore, Hyderabad

Technology & Operational Structure Loan Offering

20,000+Applications received

Avg. ticket size of

~$2,000 with average tenure of

~15 months

~27 yearsAverage age of

Applicants

300+ Cities

Presence across

20 States Covering over

25+ Skill Industries

200+ Institute /Corporate

Partnerships

Skilling Loans

Online CSR Activity

Operational Structure Technology Structure

Collection Muscle Across 600+ Locations

Strong Credit Assessment Methodologies

In-house LMS/LOS Platform

Instant Credit Assessment

Digital Signing and Quick Disbursement

Paperless Application

~52%Salaried Applicants

~50%Applicants with CIBIL

Score > 700

~70%Applicants being

Graduate or Higher

Institute Partnered

Eduvanz: Quick snapshot Status

1

School Finance2

Pre-School K-12

Increasing number of Loan Applications and AUM

Assumption $1 = INR 70

3 14

58

133

255

402

-

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

FY19P FY20E FY21E FY22E FY23E FY24E

AUM Growth ($ Mn)

Eduvanz: Loan Products

Skill Loans Upskilling Loans

Eduvanz partners with skill institutes to provide loans to students looking for course enrollment

Student

Institute

Eduvanz partners with certification institutions to pay the certification fees on behalf of individuals

who are either employed or will get employed by the partnered Corporate

Institute

Eduvanz pays the fee to institute

Institute

Eduvanz pays the fee to institute

Working professional

PartnersPartners

• Pays EMI to Eduvanz• Acquires Skill• Gets Employed

• Pays EMI to Eduvanz• Upskill• Increase in Salary/ Promotion/ New Industry

• Interest Free Loans• Credit Guarantee provided by Institutes• Co-borrower Required

• Interest Free Loans or Hybrid or Interest Only Loans• Pro Rata Guarantee by institutes• Working Individual 0%

Eduvanz – A differentiated play in Education Financing

Primary focus on Loans to Schools/Institutes

High Ticket Size Low Ticket Size

Vocational Education

Pre-Schools

K-12

Test Preparation

Higher Education

No. of Students

~US$4.2 bn

~3mn Students

Public and Private Sector Banks

~US$ 1.9 bn

~US$44.9 bn

~US$31.6 bn

~US$ 22.5 bn

~3mnStudents

~81mnStudents

~111mnStudents

~37mnStudents

Foreign and Indian Education

Personal Loans NBFCs

Highly CompetitiveHigher NPAs

Long Tenor Product

Medium Ticket SizeINR 2 LakhINR 10 LakhINR 25 LakhINR 1 Crore

Market Size

Acquisition platform in the space

Small players in the space

Eduvanz focuses on Large Market segment where very few

competitors operate

• TEAM - 60+ years of cumulative experience in Education, Technology & BFSI Sectors

• TECHNOLOGY – Innovative tech platform serving the need of institute as well end borrower with 0 touch processing

• TIMING – 65% of Indian population below 35 years showcasing massive need of financing for education and skill building

• RISK MANAGEMENT – only NBFC to have risk algorithm specifically created for education sector

• OPPORTUNITY - currently no FI institute in India is looking at education as a dedicated lending space giving us a lead in this multi billion dollar space *

Eduvanz vs Other Financial Organization

BanksNBFC -

TraditionalFintech Eduvanz

Product TypeHigher Education + Study

AbroadStudy Abroad Personal Loans

Skilling +Upskilling + Online Education + K-12

Credit Risk Management

CIBIL Based Scoring Collateral Dependency

CIBIL Based Scoring Institute needs to be Tier -1

Alternate Data on Applicant + CIBIL

Institute / Industry/ Course Rating + Alternate Data on

Applicant + CIBIL + Demographic Score

Interest Type Interest only Interest only Interest + SubventionInterest + Subvention +

Hybrid

Credit ProtectionNo: Collateral is used for

the same Not Applicable : Collateral is

used for the same No Yes

Institute Tech Integration

No No Limited Yes

Serviceability Low Medium High High

and….. ……..

*Most of the NBFC’s and Banks continue to focus on study abroad or Tier -1 higher education financing

Varun ChopraCEO

10+ years experience across Banking, Outsourcing and Client Management worked with • Deutsche - Global Credit Desk• Nomura – VP CMT• Computer Eng/ MBA

(IIT-Madras)

Atul SashittalCTO

25+ years experience across Information Technology, Project Management, Communications, Network Management, Application development, implementation & support, IS security and Audit with• Angel Broking – Head IT• CLSA India – Head IT• Birla Sunlife Securities

Raheel ShahCBO

10+ years experience across Edutech entrepreneurship, Strategy, sales, retail performance, business turnaround, across industries • Accenture India Pvt. Ltd.• Chemical Eng/ MBA

(IIM-Ahmedabad)

Sukesh TandonCRO

18+ years experience across credit policy and collection strategy roles with leading organisations like • Citi – Credit Policy Auto, PL, CD• HSBC –Collection & Retail Assets• Fullerton HDFC bank – Risk & Portfolio

Management across products

Mr. Arvind Mathuris a pioneer of private equity

and venture capital in theAsia-Pacific region

Mr. Amit Ratanpal serves as a Founder and

Managing Director at Blinc Advisors

Mr. Sandip Ghoseis the Director of the NISM,

an educational initiative of the SEBI

Mr. Sudhir Khanna is a Senior Banking Professional

Under Commercial Banking space for various BFSI

Management Team and Advisors

Management Team

Board Of Advisors

How the Credit Scorecard Works

A simple Risk Score is created for each application

0

100

200

300

400

500

600

700

800

Final Score – 500/600 (Low Risk )

Final Credit Risk Score out of 600 will be provided for each application , with high score showing lower chance of credit default

Financial Applicant

Industry/Institute/Course

Score – created using own

propriety algorithm which tracks

16 different sector and each

institute basis placement criteria's,

company performances, salary

expected, regulations etc.

Mobile Score -• Behaviour Score - calling history,

browser history• Financial Score – created using

smses• Social Score - interaction with

social platform• Location Score – presence of

individual/device at locations marked as office/home

Demographic Score –

score assigned to each

applicant basis their

demographic profile and the

portfolio behavior

Banking Score –

creating using financial

documentation and

data provided for

financial applicant

Bureaus Score –Traditional score given basis data the multi bureau score

Industry / Institute Score

Mobile Score

DemographicScore

Banking Score

BureauScore

Technology Platform

• Digital Application via Website• Application through Mobile

App• Instant IPA – IMDBB Algo• Instant Eligibility through

Institute Dashboard• Quick EMI Option on Partnered

Website

Lead Onboarding Document Verification Credit Appraisal Loan Booking Loan Repayment

• Digital document verification• API based bank statement

fetching• Documentation scanning

and upload flexibility

• Automated credit appraisal• Algorithm based

Underwriting• Flexibility in product

offering• Automated Dedupe and

Fraud Detection• Multi bureau connect

• Paperless loan onboarding

• On click NACH Setup• Instant Disbursement• Real time communication

to partnered institution

• Automated EMI Deduction• Automated Pre Due Alerts for EMI • Real time 360 view of portfolio• Instant EMI payment settlement• Flexibility in loan repayment

Eduvanz mobile app replicating the digital desktop journey E2E

Key Features

Scalability & Mobility Intelligent, Agile & Efficient 100% Digitized Experience Seamless External Party

Integration

Next 5 Years

B2C Focus – Corporate , College partnerships

Expansion across similar global markets

Initiate lending for PG & above Courses

K-12 School Fee, Test Prep – online /offline

courses

E2E paperless loan disbursement with

STP Model

Enabling Profile, Skill & Institute mapping for

individuals

AI driven risk algorithm with predictive analysis

Integration with global players across Education

Finance, Vendors, etc.

Platform integration with Institute for seamless admission & student

progress tracking

Vernacular Support

AI – Artificial Intelligence, PG - Post Graduate, STP - Segmentation, Targeting and Positioning model

Product

Tech

Awards and Accolades

Part of PMO/Niti Aayog Financial Inclusion C2C team

Winner of Wharton Startup Challenge 2018

Part of Inc42 And IAMAI Release List Of 30 Emerging Fintech Startups In India

Winner of India Fintech Forum as IFTA 2018 Financial Inclusion Initiative

High social impact by providing equal financial opportunities to all

Problems faced by Borrower/Applicant and Institutes

Creating an ecosystem where Lender, Institute and the Student can come together helping each other

How Eduvanz is making a difference by catering to these problems

● Chance of getting loan is too much dependent on CIBIL● Loan for attaining a specific skill is not entertained by Banks and already

well established NBFCsStudent

Institute

● Technology integration with the Institutes● Institutes are not able to provide Finance as a lever to increase enrolments

despite offering discounts to increase capacity utilizations

● Tech Platform: Tech enabled platform with advanced credit scoring mechanism

● Personalized Loans: Customized loan solutions based on the unique risk mitigants and

financial solutions for each Partner

● Beyond conventional CIBIL: Loan provided to first time borrower with low CIBIL by running a

background check including Social Score, Education Score, etc. and by taking

Parents/Guardians as guarantor

● Organizational memory and DNA to uniquely understand Education, Finance, Technology -

and marry all three to excel at the intersection of these three

Institute in Tier 1 city

Completing the course to become a professional

Going back to his/her home town to start

their careers

Student coming from Tier 2/3/4 city

Institute in Tier 1 city

Completing the course to acquire a new skill/improve existing skill

Working professional from Tier 1/Tier 2 city

Move towards better earning opportunities

Thank You