Leap Raises $55M to Revolutionize Indian Study Abroad - Owl Ventures & Harvard Management Company Backing

Leap Secures $55 Million in Funding to Support International Education

Leap, a San Francisco and Bangalore-based startup focused on assisting Indian students with overseas college applications, test preparation, visa acquisition, and loan procurement, announced on Wednesday a new financing round totaling $55 million. This investment comes from prominent edtech investors.

Series C Funding Details

The funding round was spearheaded by Owl Ventures. Harvard Management Company, well-known as a significant limited partner in venture capital funds, also participated. Existing investors, including Sequoia Capital India and Jungle Ventures, contributed to this Series C round.

This latest funding follows a Series B round completed in March, bringing Leap’s total funding to exceed $75 million.

Bridging Edtech and Fintech

According to co-founder Arnav Kumar, Leap operates at the convergence of educational technology and financial technology. The company facilitates the process for Indian students seeking admission to international universities.

Furthermore, Leap ensures students have the necessary financial resources and visa support to successfully study and live abroad.

A Substantial Market Opportunity

Leap is targeting a significant market. Each year, a large number of Indian students travel internationally to pursue higher education.

Ashish Agrawal, Managing Director at Sequoia Capital India, noted the increasing desire among Indian students to study abroad.

Addressing Challenges Faced by International Students

Students encounter various obstacles, even after arriving at their chosen university. A key challenge is establishing a local credit history.

Without this history, accessing financial services like loans or credit cards can be difficult, often requiring higher interest rates.

Financial institutions perceive increased risk when dealing with foreign nationals, leading to elevated borrowing costs. For example, an Indian student in the U.S. might face interest rates exceeding 13%, almost double that of their domestic counterparts.

Leap’s Financial Solutions

Leap tackles this financial hurdle by offering loans to students at competitive interest rates. These rates are determined by evaluating data generated within India.

However, financial assistance is just one aspect of Leap’s comprehensive services.

Expanding Service Offerings

The startup has rapidly broadened its services to provide a complete infrastructure for students pursuing international education.

Leap has cultivated a community of over 1 million students, fostering peer support and information sharing. The company reports assisting over 60,000 students with their study abroad journeys in the past 18 months, experiencing its most successful fall season to date.

Growth and Expansion

Since the last funding announcement, Leap has demonstrated substantial growth across multiple areas, according to Kumar.

The student community is expanding rapidly, adding 100,000 members monthly, and the test preparation application is gaining popularity. Furthermore, the demand for its financial services has increased significantly.

Leap has also introduced support for students seeking internships while studying abroad, addressing another common challenge for international students.

Future Plans

With the new funding, Leap intends to extend its services to new international markets, including the Middle East and Southeast Asia.

The company aims to facilitate students’ access to higher education in 20 countries. Kumar previously held a position as an Associate Vice President at Elevation Capital.

Industry Perspective

Amit Patel, Managing Director of Owl Ventures, stated that Leap is poised to become the leading platform for students studying abroad.

He emphasized the fragmented nature of the overseas education market and the lack of a single, comprehensive solution. Leap is creating a platform that addresses all aspects of preparation and financing.

Owl Ventures is committed to supporting Leap’s mission of making international education accessible to a wider range of students.