Jodo will utilize the funds to speed up product development, sales , and find talent for the startup.
It has connections to over 700 schools, including colleges and universities, colleges and universities as well as coaching centers.
The lending options it offers help parents to pay for academic fees in 8-12 monthly installments , at absolutely no cost
The Fintech company Jodo has secured $15 million in its Series A financing which was led by Tiger Global. Existing investors Elevation Capital and Matrix Partners India also participated in the round.
Jodo will utilize the funds to speed up product development sales and recruitment of employees for its startup.
Based on Jodo’s founding director Atulya Bhat, lump sum charges for an educational institution makes up about 15-20 percent of the household income. If there are two children within the family, the cost is doubled, putting an enormous stress for the entire family.
In this scenario, Indian parents think of cutting their savings or borrowing money. After carefully observing these issues we came up with the idea of creating financial products that allow education fees to be less expensive and easier for parents and the students Bhat said.
In the early 2020s, Jodo was founded with Bhat, Raghav Nagarajan and Koustav Dey, the Bengaluru-based startup Jodo is an automated fee management system for schools of higher education. It collaborates with
educational institutions and thereby allowing them to offer flexible fee payment options to parents of students enrolled in the institution.
According to the company the startup, it allows parents with monthly or quarterly fees to institutions of higher education. In addition the platform helps educational institutions to receive steady cash flow at pre-scheduled dates.
So institutions of higher learning don’t need to worry about keeping in touch with parents. They don’t have to think about how much fees will be the next month. With Jodo they have an almost guaranteed money flow Bhat said.
Jodo added that, at present the platform is in contact with over 700 educational institutions , including schools colleges and universities, as well as coaching centers, and many more.
Working of Jodo’s Lending Solutions
Jodo’s lending services allow parents pay for their tuition in monthly installments of 8-12 months free of charge. For instance, suppose that schools charge an annual cost that is INR 1 Lakh from the students. In this scenario, parents could be able to pay INR $10k per month up to 10 months through Jodo’s platform.
Jodo earns money by charging fees to institutions of higher education for each purchase made by parents through its platform or the payment services it offers. For instance, Jodo Flex, is a regular payment product.
Jodo Flex allows parents plan their tuition payments to their school at the start of academic school. This is an industry first product and we’ve created many others similar to it, Bhat shared.
Contrary to UPI payments, where shopkeepers or retailers receive payments directly to their bank accounts and don’t need to reconcile the payments later the educational institution has to verify which students have paid for fees and for what component. In light of this, the institution needs to issue a receipt as soon as possible, Bhat said while explaining the procedure for collecting fees.
The Bengaluru-based startup claims it has processed more than INR 1000 crore of fees on its platform. It also claims that it has assisted more than 100,000 students and parents thus far.
The scope of Fintech in the Indian Education Sector
For Indian families education has been viewed as a key factor to raise one’s standard living and earnings. In the end, they increase their income to fund education, and also cut back on other expenditures.
Currently the education sector is 2x to 3x the size of the e-commerce industry, but there aren’t any financial products designed specifically for the sector. The education industry is in the field of digitisation and efficiency, Bhat stated.
If we look at the fintech industry in India there are a lot of payment options via digital technology are accessible to individuals at present. On the other hand some fintech solutions were designed specifically for education.
Today parents are looking for an easy payment option for education. In addition, educational institutions are also seeking to offer the convenience of parents to pay tuition fees for pupils, Raghav Nagarajan, co-founder of Jodo and Jodo, told.
Furthermore, Jodo claims to have increased 10 times year-on-year (YoY) since its beginning. Jodo is present in more than 50 Indian cities at present. It plans to also create an income management system for institutes in the near time. In the next 12 months, it hopes to handle around INR 15,000 Cr fees and collaborate with 5000 educational institutions.
In the Fintech lending market it is in competition with other lenders like Zenda and Propelld and Propelld, among others.
According to in an Inc42 study the Indian fintech industry will likely to be an $1.3 Tn market, expanding at a rate of 31 percent between 2021 and 2025. In this regard the lending segment, it is responsible for a 616 billion part of the total fintech market.