In Startup50 2017: Shiksha Financial is a RBI licensed NBFC that provides two types of loans; one to educational institutions to help them improve the quality of education and another type of loan to parents of K12 students to buy books, uniforms or pay tuition. The company is backed  by Michael & Susan Dell Fondation and Aspada Investments.                                                                               

Founders: V.L. Ramakrishnan, Jacob Abraham

Two-fold initiative: Shiksha Financial Services (Shiksha) which was founded in 2014 follows a two-prong business model that benefits both the educational institutions and students alike. The RBI licensed non-banking financial company (NBFC) provides two types of loans; one, to educational institutions to help drastically cut down on the cost of private borrowings and vendor costs for goods and services provided to the institutions and two, to students to help pay for tuition fees, books and supplies, uniforms and more. To elaborate, for institutions, Shiksha provides unsecured loans from Rs. 1 lakh to Rs. 15 lakh and secured loans of up to Rs. 2.5 crore. For students, the average loan size is close to Rs. 15,000 with a tenure of a year or just under.

At present, the company is active in the states of Tamil Nadu, Karnataka, Andhra Pradesh and Puducherry. 

Charted plans for the future: In September 2017, Shiksha raised US$ 2.5 million (Rs. 16 crore) through a mix of debt and equity from Michael & Susan Dell Foundation. It had previously been backed by Aspada Investment Company. These funds will be utilised towards entering new markets including Telangana and Maharashtra while also strengthening operations in the regions Shiksha is currently active in.

Currently, the NBFC has funded close to around 600 schools and aided nearly 3,000 students through its operations. For this fiscal, Shiksha aims to close with a loan book of Rs. 100 crore. 

Quick Facts:

• For educational institutions, provides unsecured loans from Rs. 1 lakh to Rs. 15 lakh and secured loans of up to Rs. 2.5 crore
• For students, the average loan size is close to Rs. 15,000 with a tenure of a year or just under
• Funded close to around 600 schools and aided nearly 3,000 students at present
• Raised US$ 2.5 million (Rs. 16 crore) through a mix of debt and equity from Michael & Susan Dell Foundation & other investors in September 2017
• Aims to close with a loan book of Rs. 100 crore for this fiscal year