A Chennai-based leading financial services group, called Sundaram Finance, has announced its first start-up investment in New Delhi-based GyanDhan Ed-tech startup.
Sundaram Finance’s subsidiary Sundaram Finance Holdings, has made an undisclosed equity investment in GyanDhan (dedicated to the higher education loans for study abroad).
Founded by two IIT alumni — Jainesh Sinha and Ankit Mehra — GyanDhan uses proprietary logic to underwrite large ticket education loans. They have already helped over 250 students get education loans of around ₹60 crore.
Sundaram Finance group has been actively engaging with start-ups in the areas of financial services and fin-tech. “We are already engaging with multiple start-ups with various types of engagement models — operational, financing, and also equity investments where it makes sense” added Harsha Viji, Deputy Managing Director of Sundaram Finance.
While there is no specific timeframe or corpus in mind, the group is looking to make further investments as opportunities arise. The investments will be minority stakes in early stage ventures where the ticket sizes of $1 million or less, though larger investments will be made where warranted.
The group is also looking at a number of other startup teams with a view to adapt in Sundaram Finance’s businesses so that can enable them to participate in the digital technology initiatives.