Leap Finance Secures $100 Million in Debt Funding from HSBC to Support Indian Students Studying Abroad
Leap Finance, a leading education loan provider for students pursuing postgraduate degrees abroad, has secured a significant $100 million in debt funding from HSBC’s Asean Growth Fund. This funding marks a crucial step in Leap Finance’s mission to make international education more accessible for Indian students.
Empowering Students Through Financial Support
Since its inception, Leap Finance has been dedicated to easing the financial burden for students aspiring to study abroad. To date, the company has disbursed over $250 million in loans, benefiting more than 5,000 students. With the newly secured funding, Leap Finance aims to:
Expand its services to additional US states.
Strengthen its partnerships with universities.
Enhance its presence in India.
According to co-founder Vaibhav Singh, the funds will primarily be used to finance more students traveling to the US for their studies. He stated, “This fundraising is a debt-raise to help us finance more students going to the US for international study. The average ticket size is about $50,000, so we’ll be able to support over 2,000 students through this facility.”
A Unique Approach to Student Loans
What sets Leap Finance apart from traditional lending institutions is its approach to loan approvals. Instead of relying solely on a student’s current income or requiring collateral, Leap Finance assesses loan eligibility based on the applicant’s projected future earning potential. This innovative model makes higher education abroad more accessible to talented students who may not have traditional financial backing.
The rising costs of studying abroad, exacerbated by the weakening rupee, continue to challenge students. However, Singh remains optimistic about the return on investment (ROI) for students pursuing high-quality education. He emphasized, “The reality is that the outcomes students can achieve from a high-quality education are disproportionately large. From a student’s perspective, it’s all about ROI—what am I spending, and what am I getting out of it? I don’t think the rupee depreciation has much of an impact on students going to good schools and good programs.”
A Growing Platform for International Education
Leap Finance is part of Leap, a comprehensive study-abroad platform founded in 2019. Leap owns multiple brands, including:
LeapScholar – Offers counseling and admission guidance.
LeapFinance – Provides financial support through education loans.
GeeBee – Assists with university applications and guidance.
Yocket – A student networking platform for study-abroad aspirants.
With a presence in 11 countries, including India, the Philippines, Vietnam, Bangladesh, Nepal, and Nigeria, Leap is rapidly expanding to cater to the needs of international students. Over 80% of its revenue is generated from India, reflecting its strong foothold in the region.
Continued Growth and Investor Confidence
Leap Finance’s latest funding round follows its $65 million equity raise in January, led by London-based private equity firm Apis Partners, with participation from existing investors Owl Ventures, Jungle Ventures, and Peak XV Partners. This latest infusion brings the total capital raised by the startup—both equity and debt—to over $400 million.
Commenting on the investment, Shaun Sakhrani, Head of Structured Banking for Southeast Asia at HSBC, stated, “We are honoured to provide Leap Finance with this bespoke and scalable facility that will help grow its portfolio while supporting more Indian students as they pursue higher education in the US.”
Looking Ahead
With robust investor backing and strategic expansion plans, Leap Finance continues to redefine the landscape of student lending. By bridging the financial gap for thousands of aspiring students, the company is playing a pivotal role in enabling access to world-class education and global career opportunities.
As the demand for international education grows, Leap Finance remains committed to its vision of empowering students through innovative financial solutions. With this latest funding, the company is well-positioned to support the next generation of global professionals.
Final Thoughts
Education is one of the most powerful tools for personal and professional growth. With Leap Finance’s continued efforts, more students will have the financial backing to chase their dreams of studying at top global institutions. As the company expands its reach and impact, it will be exciting to see how it further revolutionizes student lending in the coming years.
Stay tuned for more updates on Leap Finance and its journey toward making global education accessible for all!
(FAQs)
1. What is Leap Finance?
Leap Finance is a student lending platform that provides education loans to students pursuing postgraduate degrees abroad. It is part of the broader Leap ecosystem, which also offers counseling, visa assistance, and exam preparation services.
2. How does Leap Finance determine loan eligibility?
Unlike traditional banks, Leap Finance assesses loan eligibility based on a student’s projected future earning potential rather than their current income or collateral. This makes it easier for students without financial backing to secure funding.
3. What is the average loan amount provided by Leap Finance?
The average loan amount is approximately $50,000 per student, covering tuition fees and other educational expenses.
4. How many students have benefited from Leap Finance’s loans?
To date, Leap Finance has disbursed over $250 million in loans, supporting more than 5,000 students in their higher education journeys.
5. What will the $100 million debt funding from HSBC be used for?
The funds will be used to expand Leap Finance’s services to more US states, strengthen university partnerships, and enhance its presence in India.
6. Does the weakening rupee impact students’ ability to study abroad?
While the rupee depreciation increases tuition fees and living expenses, Leap Finance believes that students pursuing high-quality programs prioritize return on investment (ROI) over currency fluctuations.
7. What other services does Leap offer apart from education loans?
Leap provides end-to-end services for students, including counseling, visa assistance, exam preparation, and networking through platforms like LeapScholar, GeeBee, and Yocket.
8. What regions does Leap Finance currently operate in?
Leap Finance has a presence in 11 countries, including India, the Philippines, Vietnam, Bangladesh, Nepal, and Nigeria, with plans to expand further.
9. How much funding has Leap Finance raised in total?
Leap Finance has raised over $400 million in equity and debt funding from investors such as Apis Partners, Owl Ventures, Jungle Ventures, Peak XV Partners, and HSBC.
10. How can students apply for a loan with Leap Finance?
Students can apply for an education loan through Leap Finance’s official website, where they can check their eligibility and receive personalized loan offers.
