Chennai-headquartered, Finwego, a “loans-for-school-ecosystem” startup, has raised US$1.7 million ( ~₹ 11.84 crore) in a seed funding from SAIF Partners along with a group of HNIs and angels in a fresh round of funding.
Founded by a Harvard and a Stanford alumni — Pavee Ramanisankar and Shiv Vadivelalagan, and incubated at the Harvard Innovation Labs, Finwego will use the freshly raised capital for expansion, growing a profitable book and strengthening tech and data infrastructure. Finwego will also focus on doubling its headcount within 3 months from a current team of 30 members.
Founded last year, Finwego is an education finance company in India addressing the entire spectrum of financial needs of K12 schools. The startup delivers tech-enabled lending products to stakeholders in the school ecosystem, including management, parents, teachers and vendors. It is currently operational in Tamil Nadu.
Finwego, which is planning to apply for an NBFC licence, offers personal loans to school teachers, education loans to parents/students for paying school fees, and working and growth capital loans to private schools.
Finwego has already on-boarded over 200 schools in the last six months and is planning to expand to more than 1,000 schools by the end of this financial year.
Finwego co-founder and CEO Shiv Vadivelalagan said in a statement to business daily, “Our aim here at Finwego is to deliver customised lending products for the rapidly growing private school education space in India. With the infusion of new funds, we are looking to build a high calibre team and digital infrastructure to support our robust growth plans.”
The edu-finance startup aims to reach out to over 10,000 schools over the next five years and establish a pan-India presence.
Finwego is also the winner of the prestigious Harvard Innovation Challenge 2018 as well as the winners of Financial Health Award 2018 organized by Village Capital, a Washington, DC-based venture capital firm that finds, trains, and invests in early-stage ventures solving major global problems in agriculture, education, energy, financial inclusion, and health.