Lorien Finance, a fintech firm connecting global capital markets with students from developing economies, has announced it has obtained $2.25 million in Pre-Series A funding, paving the way for a significant transformation in education financing on a global scale. This funding round was spearheaded by FlatIronX, an early-stage VC firm based in New York that invests in fintech solutions linked to India. Additionally, the round saw participation from Seedstars International Ventures (SIV)—supported by IFC, Visa Foundation, The Rockefeller Foundation, and Symbiotics—as well as Ahimsa Capital, Bhavesh Gupta (former Paytm President & COO), Ashneer Grover (former BharatPe MD), Play Holdings, and Silver Ridge Accelerator.
With global education financing projected to exceed $500 billion by 2029, affordability continues to be a significant hurdle for students in emerging markets. Lorien Finance is tackling this issue by utilizing AI-driven lending and an expansive global lender network to enhance the accessibility, speed, and intelligence of education financing.
Lorien Finance connects students to a lending pool exceeding $3 billion from over 17 international lenders, including Sallie Mae. This setup allows students to access interest rates as low as 3.49%. Since its inception, more than 1,000 Indian students have sought funding through Lorien Finance.
With this latest funding, Lorien Finance intends to extend its services to Tier 2 and Tier 3 cities in India, where financing options remain scarce. Additionally, the company plans to enhance its AI-driven risk assessment technology, fostering quicker underwriting decisions and more personalized financing options for both students and lenders.
KEY QUOTES:
“For far too long, financial limitations have dictated who can access quality education, leaving countless talented students in emerging economies behind. We are transforming this landscape by making financing more inclusive and data-informed. This investment will empower us to innovate further, delivering tailored funding solutions while equipping lenders to make confident, real-time decisions.”
– Nikhil Mudgal, Founder & CEO of Lorien Finance
“The fusion of a digital-first lending approach and a data-driven risk assessment model is what constitutes Lorien Finance as such an enticing opportunity. This methodology not only aids students but also reinforces the financial system by allowing lenders to deploy capital more effectively.”
– Shreya Choubey, Partner at FlatIronX
“The challenge of accessing quality higher education remains significant, and Lorien is uniquely equipped to bridge the financing gap, enabling a greater number of Indian students to study at prestigious global institutions.”
– Charlie Graham-Brown, CIO & Co-Founder at Seedstars International Ventures
