Zinc, a startup focused on educational wealth management, has successfully raised $25.5 million in seed funding. The investment round was spearheaded by Nexus Venture Partners, with contributions from Quona Capital, EDBI, Global Ventures, and Saison Capital. The company, founded by Prashanth Ranganathan, the former CEO of PayU Credit, is headquartered in Singapore.
The capital will be utilized to enhance product innovation, broaden its service offerings, and obtain crucial financial licenses aimed at helping families save and invest for their children’s international education. Ranganathan stated, “After departing from PayU, I took some time to explore the landscape of foreign education. I discovered a significant, untapped demand among parents eager to send their children abroad for schooling, primarily due to the increasing competitiveness in the domestic education sector. Many parents aspire to provide their children with a global educational experience.”
In August 2023, it was reported that Ranganathan, who transitioned from Prosus-owned PayU earlier that year, was actively seeking investors to fund his new initiative. His previous venture, the consumer lending platform PaySense, was sold to PayU for $185 million in January 2020.
Launched in April 2024, Zinc aims to establish a robust financial framework tailored to meet the escalating costs associated with overseas education. As an initial offering, the startup has introduced Zinc Honors, a comprehensive product suite that combines investment tools designed to diversify savings into global markets, thereby reducing the risks associated with currency fluctuations. Additionally, Zinc has launched a proprietary AI-powered educational counselor named Ada, which offers in-depth guidance for aspiring students in India.
Ranganathan also revealed that Zinc has collaborated with Leo Wealth, a wealth management firm based in Singapore, to create a dedicated wealth fund, which is slated to launch in November. This fund will allow parents to invest with the goal of accumulating a specific amount within a designated timeframe to support their children’s international education, complemented by expert financial advice and portfolio rebalancing options.
Zinc has already obtained approval for a Registered Investment Advisor (RIA) license from the Securities and Exchange Board of India (SEBI) and has received preliminary authorization to operate as a Payment Service Provider (PSP). Furthermore, the company has applied for a brokerage license from the International Financial Services Centres Authority (IFSCA) in GIFT City.
According to Ranganathan, these licenses will enable Zinc to provide tailored investment guidance, facilitate cross-border payment solutions, and offer access to international markets. Anup Gupta, Managing Director at Nexus Venture Partners, expressed enthusiasm about the partnership, stating, “India is becoming a pivotal market for students pursuing global education. Nexus is thrilled to collaborate once more with Prashanth and Team Zinc in their mission to aid parents and students in achieving their global education aspirations through a well-planned and transparent approach, combining educational guidance with top-tier financial services.”