EduFi Secures $6.1 Million in Funding to Innovate Student Loans in Pakistan

EduFi, Pakistan’s pioneering digital platform for “study now pay later,” has successfully secured $6.1 million in a pre-seed funding round. The funding, led by Zayn VC and supported by Palm Drive Capital, Deem Ventures, Q Business, and various angel investors, aims to bolster EduFi’s innovative artificial intelligence-driven study now pay later (SNPL) lending platform and mobile application.

EduFi, operating as Pakistan’s first SNPL digital platform, aspires to tackle the nation’s challenges related to high poverty levels and low literacy rates. The startup has strategically introduced its platform in Pakistan, where conventional student loan products are lacking, resulting in individuals resorting to high-interest personal loans with cumbersome processes.

In an interview with TechCrunch, Aleena Nadeem, the founder and CEO of EduFi, emphasized the absence of traditional student loan products in Pakistan. Having been in operation for two years, EduFi has already established partnerships with 15 universities in Pakistan, offering its app to approximately 200,000 students pursuing undergraduate, Master’s, and PhD degrees. EduFi facilitates direct payment of fees to colleges upon approval of student loans.

The significant pre-seed capital injection is poised to further EduFi’s mission by reaching a broader customer base, optimizing its platform, expanding into neighboring countries, and introducing additional fintech products, including student credit cards. This funding round reflects a strategic move by EduFi to transform the conventional banking approach, marked by high interest rates and intricate application processes, into a more accessible and streamlined experience.