About Leap Finance
Leap Finance provides international education loans through an online platform. It offers financial products and services to help Indian students pursue a global career. The company was founded in 2019 and is based in Bengaluru, India.
Leap Finance's Products & Differentiators
International education loan
With the best financial structuring and advanced technology to support you, our loans are for ambitious Indians students pursuing international graduate education
Expert Collections containing Leap Finance
Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.
Leap Finance is included in 2 Expert Collections, including Digital Lending.
This collection contains companies that provide alternative means for obtaining a loan for personal or business use and companies that provide software to lenders for the application, underwriting, funding or loan collection process.
Excludes US-based companies
Latest Leap Finance News
Jul 27, 2023
Auxilo Finserve Achieves Rs 174 Cr Revenue and Rs 26 Cr Profit in FY23 Share Auxilo Finserve Achieves Rs 174 Cr Revenue and Rs 26 Cr Profit in FY23 Auxilo Finserve, an education-focused non-banking financial company ( NBFC ), recently secured a substantial funding amount of Rs 470 crore. Prominent investors, including Tata Capital, Trifecta Leaders, and Xponentia Fund led the funding round. This investment is a significant boost for the seven-year-old firm and reflects its strong growth in recent times. In the fiscal year 2022-2023 (FY23), Auxilo Finserve witnessed remarkable expansion, with its operating revenue surging to Rs 174 crore. This substantial growth marks a two-fold increase compared to the previous fiscal year, where the active income was recorded at Rs 86 crore. The company’s impressive financial performance is evident from its annual financial statements filed with the Registrar of Companies. Related Articles July 27, 2023 The sizable funding and impressive revenue growth indicate the company’s robust performance and increasing prominence in the education finance sector. With the fresh capital infusion, Auxilo Finserve will likely strengthen its position further and expand its offerings to support students and educational institutions in accessing financial assistance for academic pursuits. Auxilo Finserve, founded in 2017, specializes in providing student loans for individuals pursuing education in India and abroad. Additionally, the company offers loans to educational institutions to support their infrastructure and working capital needs. The primary sources of revenue for Auxilo Finserve are processing fees and interest earned on loan disbursements. In the fiscal year 2022-2023 (FY23), these income streams accounted for a significant portion of the company’s operating revenue, contributing to 97.5%. The company’s income from interest on loan disbursements saw an impressive 2X surge, amounting to Rs 169.7 crore in FY23. In addition to interest earnings, the company also generates revenue through commissions and processing fees. These fees increased by 2.4X in FY23, reaching Rs 4.3 crore. As Auxilo Finserve continues to witness substantial growth and gain traction in the education finance market, its revenue streams reflect the increasing demand for its services among students and educational institutions. By offering a wide range of financial products and services tailored to the education sector, Auxilo Finserve plays a crucial role in facilitating access to quality education for students and supporting the growth and development of educational institutions. Apart from its operating revenue, Auxilo Finserve also generated Rs 17 crore from non-operating sources during FY23 . These non-operating sources could include income from investments, interest on deposits, or other miscellaneous sources of revenue. However, the company also faced increased expenses in various areas during the same period. Interest costs on borrowing from commercial banks accounted for a significant portion of its total expenses, comprising 61.2% of the expenditure. The interest costs saw a substantial 2.8X surge, reaching Rs 95.5 crore in FY23. The company’s expenses related to employee benefits and IT costs also grew during this period. Employee benefit costs increased by 29% to Rs 32.5 crore, while IT costs rose by 20% to Rs 6 crore. Additionally, the company incurred expenses of Rs 3.7 crore towards legal and professional fees and Rs 3.9 crore for business sourcing costs during FY23. Auxilo Finserve’s growth in the previous fiscal year (FY23) was accompanied by a doubling of its overall costs, which reached Rs 156 crore. Despite the increased expenses, the company’s profits also saw a significant 2X rise, going Rs 25.7 crore during the same period. This improvement in profitability reflects the company’s effective management of its operations and financial performance. The company’s Return on Equity Capital (ROEC) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin notably improved during FY23, reaching 7.49% and 20.41%, respectively. These metrics indicate the company’s efficiency in generating profits and managing capital. On a unit level, Auxilo Finserve’s operational efficiency is evident, as it spent only Re 0.90 to generate a single rupee of operating revenue, showcasing its ability to control costs effectively. The expansion of its loan book further illustrates Auxilo Finserve’s impressive growth. In FY22, the company’s loan book (assets under management) amounted to Rs 769 crore, with education loans accounting for Rs 605.70 crore (78.73%) and institute loans comprising Rs 163.60 crore (21.27%). While the company did not provide the breakdown for FY23, its loan book stood at Rs 1,691 crore in the last fiscal year, indicating significant growth in its loan portfolio. The company’s successful funding of over 7,500 students across more than 900 universities in over 25 countries highlights its commitment to supporting students in pursuing education domestically and internationally. Auxilo Finserve’s robust performance and expanding loan book demonstrate its position as a critical player in the education finance sector in India. Auxilo Finserve has raised over $100 million through equity and debt since its inception. This substantial funding has enabled the company to grow and expand its operations in the education finance sector. In the competitive landscape of education-focused financial services, Auxilo faces competition from well-funded firms such as Grayquest, Avanse Financial, Financepeer, Propelld, Leap Finance, and Eduvanz. Leap Finance, in particular, secured a significant amount of $75 million in its Series D funding round in June 2022, enhancing its position in the market. Propelld also made a notable impact by raising $35 million in its Series B funding round in February, while Financepeer secured $38 million in April of the previous year. Avanse Financial, backed by Peak XV Partners, raised $98 million in its latest funding round. Similarly, Eduvanz, supported by Peak XV Partners, also mopped up $12.6 million in its latest funding round. The rush of multiple players into the education finance market is justified, considering the significant expenses in pursuing education, especially for studies abroad. The increasing demand for education loans to support students’ aspirations for higher education has led to the emergence of various financial firms catering to this segment. While this expansion is positive for students seeking financial assistance, it also raises concerns about the potential effects of competition. With numerous players vying for a share of the market, lax credit appraisal practices or a race to offer more lenient terms to attract borrowers is possible. This could lead to potential risks in the loan portfolio if not managed prudently. Moreover, credit appraisal in this segment can be influenced by the nature of the course being financed for the student, as some fields of study may have higher employability prospects than others. Despite the competition and potential challenges, the market for higher education loans in India has a promising future, given the increasing aspirations of students and their families. The demand for quality education, particularly overseas education, will likely continue growing. As the competition intensifies, it will be interesting to see which firms stand out and establish themselves as educational finance leaders. The recent sale of HDFC Credila, a former leader in this market, at a reasonable discount to its loan book may serve as a benchmark for established firms in the industry. Ultimately, the success of these education finance companies will depend on their ability to strike the right balance between offering accessible financial solutions for students while maintaining prudent credit practices and risk management. The firms that can effectively navigate these challenges are likely to emerge as prominent players in the education finance sector in India. Tags
Leap Finance Frequently Asked Questions (FAQ)
When was Leap Finance founded?
Leap Finance was founded in 2019.
Where is Leap Finance's headquarters?
Leap Finance's headquarters is located at 163/A, 9th Main Road, Bengaluru.
What is Leap Finance's latest funding round?
Leap Finance's latest funding round is Series D.
How much did Leap Finance raise?
Leap Finance raised a total of $152.5M.
Who are the investors of Leap Finance?
Investors of Leap Finance include Peak XV Partners, Jungle Ventures, Owl Ventures, Steadview Capital, Paramark Ventures and 5 more.
Who are Leap Finance's competitors?
Competitors of Leap Finance include Leverage Edu and 3 more.
What products does Leap Finance offer?
Leap Finance's products include International education loan and 1 more.
Compare Leap Finance to Competitors
Stoodnt is an EdTech company specializing in college admission and career guidance. The company offers services such as personalized counseling for college admissions, assistance with studying abroad, career development advice, and a range of online courses for skill enhancement. Stoodnt primarily serves students and professionals seeking educational and career advancement. It is based in Palo Alto, California.
Leverage Edu provides study abroad services in the education sector. It offers services that include university and course finding, study abroad counseling, preparation for English language tests, and financial services for studying abroad such as foreign exchange and loans. It primarily serves students who are looking to study abroad. The company was founded in 2017 and is based in Noida, India.
Eduvanz provides financial assistance for higher education. It offers loans for education in schools, colleges, vocational courses, and online courses, and offers monthly installment facilities for electronics, gaming, wearable, and mobility products. It was founded in 2016 and is based in Mumbai, India.
Edwise provides a solution to meet the requirements of an international study. It helps students make the decision regarding whether to continue their studies at foreign academic institutions. It offers details about higher education in numerous nations, including the UK, USA, Canada, Australia, New Zealand, and more. It was founded in 1991 and is based in Mumbai, India.
Auxilo Finserve is an education-focused non-banking finance company. It provides loans to students for pursuing education in India or overseas. The company was founded in 2017 and is based in Mumbai, India.
GyanDhan operates as an online marketplace for education loans. It gathers and curates students using its internal risk-scoring model. This enables lenders, both institutions and individuals, to finance the students of their choice, either through loans or scholarships. It was founded in 2015 in New Delhi, India.