Matrix Partners-backed Fintech Startup Jodo raises $15 million to offer No Cost Lending Solutions

Jodo will make use of the funds to boost product development, sales , and recruit talent for the startup.

It has connections to over 700 educational institutions , including schools, colleges and universities as well as coaching centers.

The solutions for lending help parents in paying for their children’s education in 8-12 monthly installments , at absolutely no cost

Startup Fintech Jodo has raised $15 million in its Series A financing which was led by Tiger Global. Existing investors, Elevation Capital as well as Matrix Partners India also participated in the round.

Jodo will make use of the funds to speed up product development and sales as well as acquire top employees for its startup.

According Jodo’s co-founder Atulya Bhat, lump sum charges for an educational institution is about 15 to 15 percent of the household income. If there are two children in the family , then the cost is doubled, putting an enormous financial burden for the entire family.

“In such a situation, Indian parents think of taking their savings and borrowing money. After carefully observing these issues we considered making financial products available to allow education fees to be less expensive and easier both for parents and pupils,” Bhat said.

In the early 2020s, Jodo was founded in the early 2020s by Bhat, Raghav Nagarajan and Koustav Dey, the Bengaluru-based startup Jodo is an online fee management platform for schools of higher education. It is a partner with

educational institutions, thus, allowing them to provide flexible fees payment plans for parents of students enrolled in the institution.

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According to the company it allows parents with monthly or quarterly fees to institutions of higher education. Additionally the platform helps educational institutions to receive steady cash flows at pre-scheduled dates.

“So schools don’t have to worry about coordinating with parents. They don’t have to think about what charges will be next month. With Jodo they can enjoy an almost guaranteed income stream,” Bhat said.

Jodo stated that at present its platform is linked to more than 700 schools, colleges and universities. These include universities, colleges, schools and coaching centres, as well as others.

Jodo’s Lending Solutions

Jodo’s lending options allow parents pay for their tuition in monthly installments of 8-12 months without cost. Let’s say that the school has an annual cost that is INR 1 Lakh from the students. In this scenario, parents could make payments of INR 10, 000 per month up to 10 months through Jodo’s platform.

Jodo earns its revenue by charging an amount of money to educational institutions for each purchase made by parents through its platform, or through the payment services it offers. For instance, Jodo Flex, is a regular payment product.

“Jodo Flex allows parents to plan their payments to the school at the start of each academic term. It’s an industry-first solution and we’ve developed many others similar to it,” Bhat shared.

In contrast to UPI payments, where shopkeepers and retailers receive payments directly to their banks and don’t have to reconcile their payments later an educational institution must to verify which students have paid fees and for what component. Based on this, the institution has to issue a receipt as soon as possible, Bhat said while explaining the procedure for collecting fees.

The Bengaluru-based company claims to have processed over INR 1,000 crore in fees through its platform. It also claims to have assisted over 100,000 parents and students so far.

The scope of Fintech in the Indian Education Sector

For Indian families education has been viewed as a key factor to improve one’s standard of living and earnings. In the end, they increase their income to finance education and cut down on other expenditures.

“Currently the sector of education is 2x to 3x the size of the e-commerce industry, but there aren’t any financial products designed specifically for this sector. The education sector is way in efficiency and digitisation,” Bhat stated.

When we think of the fintech sector in India the majority of payment options via digital technology are readily available to consumers at present. On the other hand some fintech solutions were designed specifically for the educational sector.

“Today parents are searching for affordable payment options for their children for education. Additionally, educational institutions are also trying to provide the convenience of parents to pay the academic costs of pupils,” Raghav Nagarajan, co-founder of Jodo and Jodo, told.

Furthermore, Jodo claims to have been able to grow 10x year-on year (YoY) since it was founded. Jodo is present in more than 50 Indian cities as of today. It plans to also create an automated revenue management system for institutes in the near time. In the coming 12 months, the organization hopes to handle around INR 15,000 Cr fees and collaborate with 5000 educational institutions.

In the Fintech lending market it is competing with companies like Zenda and Propelld as well as other lenders.

According to in an Business headers study the Indian fintech industry is expected to grow into an $1.3 trillion market, and it is expected to grow by 31 percent between 2021-2025. In this regard the lending segment, it is responsible for a 616 billion part of the total fintech market.

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