EduFund Raises $6M to Expand Education Financing in India’s Tier-2 and Tier-3 Cities

EduFund Secures $6M in Series A to Expand AI Advisory and Loan Access

EduFund funding has become a key topic in Indian fintech circles this week, as the platform raised $6 million to scale nationwide.

Building Smarter Financial Access for Students

India’s education-focused fintech, EduFund, has raised $6 million in Series A funding to grow its presence across underserved regions.
Led by Cercano Management and MassMutual Ventures, the round brings EduFund’s total capital raised to $12 million to date.
According to the founders, this latest EduFund funding will boost the company’s AI-based advisory services and education loan offerings.
Moreover, EduFund will prioritize scaling in Tier-2 and Tier-3 cities where access to education financing remains limited but demand is rising.
Although EduFund began with urban students, it now targets smaller cities where students need smarter tools to plan academic futures.

Backing from Global Investors Signals Rising Confidence

Doug Russell, Managing Partner at MassMutual Ventures, reaffirmed support by stating their follow-on investment reflects strong belief in EduFund’s approach.
Interestingly, MassMutual had also participated in the company’s earlier rounds before joining this larger Series A commitment.
As funding interest in India’s EdFin sector grows, the EduFund funding round sends a positive signal to global venture capital firms.
Moreover, Cercano’s involvement adds strategic weight, as the firm has backed several successful emerging-market fintechs previously.
With this backing secured, EduFund plans to build India’s largest platform for end-to-end academic financing and advisory.

AI Takes Center Stage in Advisory Evolution

With this EduFund funding round, the company aims to make artificial intelligence central to its student advisory operations moving forward.
The AI layer will offer students tailored academic planning tools, course selection suggestions, and predictive education cost analysis.
In fact, EduFund wants to automate much of the manual work that students and families currently perform when planning education costs.
Moreover, the use of AI will help simplify lender selection, document submissions, eligibility calculations, and EMI tracking.
Since most families in smaller cities lack formal advisory access, this move promises to bridge a significant gap digitally.

Tapping the Underserved: A Shift to Bharat

Beyond tech upgrades, the EduFund funding round will drive deeper expansion into Tier-2 and Tier-3 cities across India.
Many of these areas still rely on informal financing or lack sufficient awareness of student loan products entirely.
However, EduFund’s leadership sees rising digital awareness and increasing college enrollment rates in these regions.
Therefore, EduFund intends to work with school counselors, local NBFCs, and municipal authorities to expand education finance literacy.
With India’s digital penetration accelerating, such efforts align well with government education and fintech inclusion agendas.

Strong Partnerships Anchor the Vision

EduFund currently works with more than 40 asset managers and 15+ lending partners to power its education financing ecosystem.
By leveraging this network, the platform can offer students custom investment plans and low-cost loans bundled in a single interface.
Through recent integrations, EduFund also supports savings plans that automatically align with parents’ future tuition goals.
Furthermore, some partners offer scholarships, fee waivers, or soft loans tailored for girls and economically weaker sections.
This holistic ecosystem ensures that EduFund doesn’t just lend—it educates and empowers the families it serves financially.

Competing Smartly in a Hot Market

EduFund joins a wave of EdFin startups raising capital to expand services across India’s vast and evolving education sector.
Earlier this year, GrayQuest raised $9.3 million and GyanDhan secured $6 million in similar early-stage funding rounds.
Though competition is rising, EduFund believes its AI-first approach and regional strategy will set it apart meaningfully.
Moreover, its leadership—Eela Dubey and Arindam Sengupta—have deep fintech and education roots and understand student needs across income groups.
By 2027, EduFund aims to become India’s most trusted education finance brand among middle-income and aspiring households.

Future Roadmap: Growth Without Compromise

With this EduFund funding, the startup will invest in user acquisition, tech hiring, credit analytics, and mobile app upgrades.
While product growth remains a priority, the founders maintain that compliance, transparency, and borrower education will stay central.
In addition, EduFund is developing vernacular content and local support teams to assist families in their native languages.
Interestingly, several regional partnerships are already in place to pilot hybrid models combining online and offline advisory.
This blended strategy could unlock even deeper trust in rural India, where face-to-face relationships still play a key role.

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