Exclusive: Eduvanz Cofounder Raheel Shah Quits

SUMMARY

Raheel Shah, the chief business officer at the NBFC and loans provider, has stepped down from his position

Sources say Shah is likely to start his own startup incubator and his exit follows the departure of other key leaders in recent months from the company

Eduvanz recently expanded its loan offerings for students looking to study abroad and also added some EMI options for K-12 loans

Raheel Shah, the cofounder and chief business officer of education-focused non-banking financial company (NBFC) Eduvanz, has stepped down from his role.

The resignation comes at a time when the company is undergoing restructuring, sources told Inc42. While the reason behind Shah’s departure is unknown, sources further highlighted that he is likely to launch his own incubator to mentor startups.

Inc42 has reached out to Eduvanz as well as Shah for comments on the development. The story will be updated based on their responses.

Founded by Shah and Varun Chopra in 2016, Eduvanz initially collaborated with educational institutions and financial institutions to offer loans to students opting for higher education, skilling courses or vocational training.

However, the NBFC recently expanded to K-12 loans and school fee financing for parents, test preparation and study abroad financing. As per the company’s website, it is also offering loans on products in segments including electronic, gaming, wearables and electric vehicles (two-wheelers).

Besides, the company has also integrated its financing solutions with education loan marketplace WiZR.

On the financial front, Eduvanz net loss declined marginally to INR 41 Cr in the financial year ended in March 2024 from INR 43 Cr in the previous fiscal. Its operating revenue also jumped to INR 57.4 Cr in the fiscal under review, against INR 49.2 Cr in FY23.

Amid multiple leadership exits, Eduvanz recently raised a bridge round of $2.9 Mn, co-led by its existing investors Juvo Ventures and Capria Fund. The NBFC has raised a total of $49 Mn in debt and equity funding to date.

It is backed by the likes of Peak XV Partners, Rethink Education, Tiger Global, MAS, Vivriti, Oxyzo, Unifi AIF, S3 Group Partners, InCred Financial Services, Vivriti Capital, Northern Arc Capital, among others.

Notably, Eduvanz also faced a rough patch in 2023 due to its association with skilling startup Skill-Lync. As Inc42 reported, several students alleged Skill-Lync of trapping them with loans by showcasing them as salaried employees even though they were unemployed at the time. Incidentally, Eduvanz was the NBFC providing these loans to the students.