According to media reports, the study abroad portal Leverage Edu has received new investment from the global testing and assessment company Educational Testing Service (ETS).
The round's equity part has raised between USD 25 and USD 27 million, with the total amount raised, including debt, approaching USD 40 million.
The company is expected to be valued at around USD 150 million after the fundraising round.
Its prior valuation from March 2022, when Leverage Edu received USD 22 million from a group of funds, family offices, and individual angel investors, has increased by 25 per cent.
The latest round will see participation from existing investors, people cited above said. The company is backed by the likes of Blume Ventures, DSG Consumer Partners and Tomorrow Capital.
The fundraise comes at a time when Indian startups have been grappling from ongoing funding winter. Moreover, several edtech majors including Byju’s, Unacademy and Vedantu have also laid off employees over the past year in an attempt to increase runway.
Leverage Edu, which helps students from India, Nigeria and Nepal and other markets to apply to universities abroad, will utilise most of the fresh funds to ramp up its focus towards the US higher education market, reports added.
ETS develops standardised examinations, especially in the US, and also manages foreign exams including the Graduate Record Examination (GRE) and Test of English as a Foreign Language (TOEFL).
UpGrad received a USD 210 million investment from ETS Global in August 2022, valuing the firm at about USD 2.25 billion. It has also invested in the education services platform CollegeDekho through its private equity division, ETS Strategic Capital.
The New Delhi-based company, is thought to have generated more over Rs 100 crore in revenue in FY23.
It competes with edtech startup Leap Scholar, which also caters to students preparing for exams including International English Language Testing System (IELTS), TOEFL, Scholastic Aptitude Test (SAT), etc.
Leverage Edu wants to increase its facilitated loans through Fly Finance, which allegedly totaled Rs 280 crore in October of last year. In terms of loan disbursements, it planned to surpass the Rs 1,000 crore threshold in 2023.
Additionally, it has agreements with partners in the UK to provide departing students with housing.