MUMBAI : Financepeer, a Google-incubated fintech player that provides interest-free tuition to parents of school and college students, plans to double the number of schools / colleges it operates to 9,000 here in December and to double its portfolio of loans to ₹1,000 crores.
Co-founder Sunit Gajbhiye, who launched the company in 2017, said that serving around 4,500 schools / colleges, universities and coaching centers, Financepeer is the largest in this segment.
Its immediate competitors include Avanse Financial Services, Grayquest Education Finance and Eduvance, among others.
Of the 4,500 establishments, more than 3,000 are schools and coaching centers and a good number of them have joined us in the first seven months of the lockdown, he said.
Some of the best school chains it serves include Delhi Public School, GEMS Education, Birla Open Minds and Orchids, he said.
In the first seven months of the pandemic, the company added more than 1 million users / parents because they were without income or faced pay cuts.
“Since we started our activities in 2017, we have granted loans to 1.5 million students. We plan to double the number of schools / institutions to 9,000 by the end of the year and plan to double the loan portfolio from a ₹500 crore by April, ”Gajbhiye told PTI.
While for parents there are no additional costs associated with the loan, Financepeer receives an initial 5% commission from the school, which gets the full fee paid at the start of the school year, Gajbhiye said, explaining his model. commercial.
Parents can pay off in five-nine IMEs without interest, he said, adding, however, that the number of IMEs is set by the school.
Parents are also rewarded with group health insurance covering accidents, cash back offers via vouchers, and online course payments, among other benefits, which has helped over 95% of parents to stay with it. it.
So far this school year, up to 30,000 parents have taken advantage of the insurance facility, he said.
When it comes to asset quality, he said, the NPA is negligible at 0.07% this current school year, as only about 15 parents have defaulted.
He said the margins vary from 1.5 to 3% and the average loan is ₹75,000 to 80,000 per student.
The city-based company, which has raised $ 4 million in external funding, has six other offices in Pune, Delhi, Hyderabad, Bengaluru, Chennai and Dehradun, and employs 180 people.
Never miss a story! Stay connected and informed with Mint. Download our app now !!