Bengaluru: Leverage Edu, a foreign education consultancy and admissions platform, has raised $2 million in a debt financing round from venture debt firm Trifecta Capital, the company said on Thursday.

“Largely, we are using the funds to go deeper into Tier II-IV markets in India. We are getting about 70% of our business from non-metro cities,” said Akshay Chaturvedi, founder at Leverage Edu.

The funds will also be used for product innovation. “We scaled by about 15-16X in the last six months. As we scale rapidly, it’s important we build the right systems so that we will be able to give the right experience to everyone,” said Chaturvedi, who is also the CEO.

This is Leverage Edu’s first debt raise, which takes the total funds raised by the company so far to over $10 million. “Right now, we are at about Rs 150 crore annualised revenue,” Chaturvedi said.

Leverage Edu serves about 2,500 students every month. “In our entirety, we may have helped around 15,000 students,” he said.

Earlier this year, the company
had raised $6.5 million in a Series A funding round led by Tomorrow Capital and backed by existing investors Blume Ventures and DSG Consumer Partners.

“Leverage Edu is on a mission to democratise access to overseas education. It has scaled rapidly and has access to a global university network spanning four continents,” said Rahul Khanna, co-founder at Trifecta Capital. In the increasingly competitive edtech sector, Leverage Edu has a unique end-to-end offering to help students achieve their foreign education goals, he said.

The edtech market is expected to grow at 10X over the next five years to $5 billion, according to Red Seer Consulting, an consumer internet-focused consulting firm. “It will grow driven by new reforms set forth, including the increase in public spending, relaxation in regulations governing degrees, supply side capacity gaps, need realisation among students and professionals and transition to credit system,” its recent report said.

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