Indian challenger Finwego looks to lend to private schools
Indian neobank Finwego is attempting to be the first bank built for the education sector in the country.
Founded in 2018 and based in Chennai, the challenger claims to work with more than 700 institutional partners.
“Our aim is to deliver customised lending products for the rapidly growing private school education space in India,” CEO Shiv Vadivelalagan told Economic Times of India last year.
The neobank offers loans of up to $7,000 to individuals and $34,000 for institutions. The funds are secured by bank and non-bank partners holding Reserve Bank of India (RBI) licences.
Finwego doesn’t disclose the name of these partners on its website.
The neobank has raised $1.7 million in total funding since its founding, from a June 2019 seed round led by Elevation Capital.
Neither Vadivelalagan or co-founder Pavee Ramanisankar have experience in the banking sector.
Vadivelalagan spent two years as global engagement manager at consultancy Glenbrook Partners prior to founding the neobank.
Before that he worked a consultant the United Nations and Dalberg. He founded cross-bordee remittance company OK Remit in 2013.
Ramanisankar’s experience is in the education sector, having founded book publishing firm IllusTrated, and served as CEO of K-12 school Akshara Vidyaashram between 2010 and 2015.