Leap Finance, a fintech platform aiding Indian students in pursuing higher education abroad, is in the process of raising between $70 million and $100 million in a new funding round. This effort comes more than two years after the company completed its Series D round. The company has attracted interest from several investors, including both new and existing ones, due to its strong performance over the past two years.
The firm is currently in talks with at least three new investors for its Series E round, aiming to raise up to $100 million. This new round is expected to elevate Leap to unicorn status. In its previous Series D round, Leap secured $75 million from leading investors, placing its valuation between $850 million and $900 million. However, specific details about its valuation, shareholding, and revenue are not publicly available as the parent entity is incorporated in San Francisco and not registered in India.
The ongoing negotiations involve two of the three new investors, with Leap expected to finalize the lead investor in the coming weeks. The company is targeting a valuation range of $1 billion to $1.2 billion for this Series E round. Since its Series D round, Leap has seen substantial growth, expanding its services and reaching more students.
Leap Finance provides educational loans for students aiming to study at international universities. Through its platforms like LeapScholar, LeapFinance, and Yocke, it offers a range of services including test preparation for IELTS, TOEFL, and SAT, admissions and visa counseling, and various financial services. The company also assists with setting up international bank accounts, credit cards, and money remittance.
The new funding round will include both primary and secondary capital, allowing some early investors to partially or fully exit. Despite challenges faced by the broader edtech sector, companies focused on financing overseas education have successfully raised significant funds. Leap and its competitors have collectively secured substantial investments in the last two years, driven by the growing demand for higher education abroad and the superior exposure it offers. InCred, another major player in this sector, reported that overseas educational loans comprised a significant portion of its total disbursements, highlighting the robust growth and increasing awareness in this market.
