Fintech Startup Jodo Secures $15 Million in Fundraising Led by Tiger Global
Fintech startup Jodo which specializes in payments for education secured $15 million in a new funding round led by New York-based investment firm Tiger Global.
Jodo received $4 million in funding from Elevation Capital and Matrix Partners India, two current investors, who also took part in 2020 year-round.
The business said that it will put the money to use by speeding up workforce expansion and product innovation.
Atulya Bhat, Raghav Nagarajan, and Koustav Dey established Jodo in the year 2020. In order to make tuition payments simple and affordable for parents, Jodo offers a variety of customized payment and loan alternatives.
For the purpose of assisting students and their parents with the cost of higher education, Jodo offers lending products through non-banking financial company (NBFC) partners.
“We are expanding together with the comeback of traditional education. Since the implementation of COVID-19, payments that were previously made in cash have been digitalized, and we have seen that many schools are now providing their parents with various payment choices. Because reconciliations can be a nightmare, it is difficult to provide this flexibility (for these institutes)”, Bhat told.
Over 700 educational institutions presently work with Jodo, 40% of which are offline schools serving students in kindergarten through grade 12 (K–12).
With the most recent funding, Jodo hopes to expand its education relationships to 5,000 establishments over the course of the next 18 months, including schools, colleges, and offline coaching centers, and assist 1.5 million students with their tuition payments.
Jodo plans to introduce newer products to manage payouts made by educational institutions as well as an education-saving product for parents, in addition to offering payments, lending, and loyalty advantages surrounding fee payments.
According to Bhat, “the company is also considering ways to support the development of a payment ecosystem for educational institutions and university campuses.
“Jodo is bringing more ease and affordability for parents, improving workflow for schools and institutions, and upgrading payments and credit for India’s education system. We are really pleased with Jodo’s development”, said Tiger Global partner Alex Cook.
In the upcoming months, the company plans to submit an application for its own NBFC license.
As per Elevation Capital partner Mridul Arora, “It is an honor for us to continue working with Atulya, Koustav, and Raghav. The fervor with which schools and parents have embraced their products demonstrates that they are not only addressing a significant problem but are also doing it with tech-first, user-friendly solutions”.