Study abroad platform Leverage, which operates LeverageEdu.com, UniValley.com, UniConnect, among others has forayed into financial services and has rolled out three different services: international remittances, education loans, and international bank accounts.
”Top most focus area for us is remittances right now, it has a great product-market fit with the student journey, plugs in beautifully with our app, and has grown a full 100% month-on-month ever since the pilot a few months back. That gave us the confidence to apply for an FFMC license,” founder and CEO of Leverage, Akshay Chaturvedi said. Chaturvedi said that the company has been in discussions with the RBI for the last two months or so. "We are hoping to receive the license in the next few weeks," he said.
“We have a different approach on education loans, and are at the moment only aiming to facilitate the lowest possible interest rate to be able to complete the loop for students - that gives us a chance to work with leading public sector banks and undercut the market massively, being able to give out the best interest rates!”. In a pilot for its students in the last intake, it processed loans over Rs 75 crores, and is aiming to hit a Rs 1000 crore loan book in the next 6 months, the company said in a statement to press. The company had a record 18% referral in the September intake.
"Most lenders do not have the kind of relationship we have with a student, and we are using the same to be able to fight on behalf of the student for best rates, and more customised pricing / credit decisions that take into account multiple external factors outside just the plain financial records," he added. Leverage Finance is being built by Rachit Juneja, who has previously worked with Constellation Blu (Blume Ventures’ partner firm) and KPMG in its financial services division, according to the statement.
The team already has a headcount of over 30 right now, and is looking to hire 60-70 more people next quarter across several roles. The company has also facilitated opening over 500 bank accounts, primarily of students heading to study in the UK and Canada. These are done in partnership with destination-country banks, and the entire process is completed in India, before the student flies out.
"This gives a chance for banks in foreign countries to extend their services to Leverage customers," according to the company statement.