Home » EduFi Raises Funding to Revolutionize Student Loans

EduFi Raises Funding to Revolutionize Student Loans

by Jack B.

EduFi, a Singapore-based fintech startup aiming to expand access to student loans, recently raised $6.1 million in pre-seed funding. The round was led by Zayn VC and brings EduFi’s total capital raised to $7.3 million. The company was founded by Aleena Nadeem, an MIT graduate previously with Goldman Sachs and Ventura Capital.

The Challenges of Student Loans 

In Pakistan, where EduFi launched its platform, students face major obstacles in accessing loans for higher education. Traditional banks offer high interest rates and a lengthy application process taking weeks for approval decisions. Given the country’s poverty levels, these hurdles prevent youth from low-income families from pursuing their academic dreams.

EduFi: AI-Powered Student Loans

EduFi tackles these challenges through an innovative artificial intelligence-powered lending app. The company built a streamlined, mobile-first process that uses alternative data for credit scoring. This allows EduFi to approve and disburse student loans within just 48 hours.  

The app delivers an intuitive experience similar to consumer fintech platforms. Students simply submit details on their university, fees owed, and academic performance. EduFi’s algorithms crunch numbers in the background to generate customized loan options.


So far, EduFi has partnered with 15 universities to make its platform available to around 200,000 students. The loans help students pay fees for undergrad, Master’s, and PhD programs across Pakistan.

Investor Excitement for EduFi’s Vision 

EduFi’s $6.1 million pre-seed round validates investor enthusiasm for its goal of broadening access to student finance. The round was led by Zayn VC, with participation from Palm Drive Capital, Deem Ventures, Q Business, and angel investors.

Zayn VC Founder Faisal Aftab highlighted EduFi’s potential for positive impact: “This is a significant step towards achieving financial inclusion for middle and low-income families. In Pakistan, families spend more than 50% of their income on their children’s education, which has become increasingly challenging due to inflationary pressures. EduFi’s innovative approach will help alleviate this burden and empower families to invest in their children’s future.”

Next Steps for EduFi

The capital infusion will support EduFi’s plans to scale up its lending platform across Pakistan and expand into new markets. The company also aims to optimize its technology using data insights and machine learning algorithms. EduFi plans to offer additional fintech solutions like student credit cards to meet all aspects of educational financing needs.  

With prudent execution, EduFi can define the future of student loans in regions where traditional lenders fail to serve the needs of aspiring young learners. Democratizing access through financial innovation aligns strongly with the startup ethos. For Founder Aleena Nadeem, this funding marks the latest step in a remarkable journey to disrupt education finance.


EduFi’s success signals investors believe innovation can overcome structural barriers limiting student lending. By creatively applying technology to address unmet needs, the company exemplifies how startups can drive positive change. As EduFi gains scale, its approach may provide a blueprint for transforming student finance well beyond Pakistan.

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