Saving parents the hassle of paying tuition fees, UAE-based Zenda announced it has raised an oversubscribed $9.4 million seed round. The funding round saw participation from STV, COTU, Global Founders Capital and VentureSouq.
Zenda is currently addressing issues around tuition payment – specifically, the lack of convenience and flexibility in payment options for parents and poor payment collection for schools. The funds will be used for product development and market expansion in India.
Zenda CEO and Founder Raman Thiagarajan said, “In today’s digital world, we crave low friction and immediacy – why shouldn’t that be the case for fee payments? Part of the ecosystem still operates in cash with no convenient option to pay later.
The tuition payment industry is massive in India to say the least. The country already records more than $70 billion in tuition payments per year, which is just the recorded data. The market is worth nearly $37 billion in the GCC and $34 billion in the rest of the Middle East and Africa.
Paying tuition fees in India is a tedious process. For one, much of it is still cash, making it difficult to keep track of parents. In cases where it is digital, it still depends on more traditional forms of payment such as NEFT, RTGS among others. Also, tuition fees are mostly paid in bulk, either quarterly, semi-annually, or annually in some cases. This generally puts financial pressure on middle-income families.
Using Zenda, families can track dues and make payments with a host of immediate and later payment options, and unlock rewards for paying on time. Zenda integrates with schools through its proprietary data model and APIs (much like zapier) and eliminates last mile reconciliation challenges and delays.
Zenda seems to have hit the nail on the head, right on her head. The rather fledgling platform claims to have already seen strong traction. After its initial launch in the United Arab Emirates, Zenda launched its entry and operations in India in the third quarter of 2021, and saw strong market traction with schools and families. It has grown its user base 20x since June 2021 and passed the $100 million mark in annual contracted POS volume in Q4 2021, across both markets.
Zenda, a platform that helps parents pay school fees, receives $9.4 million to expand in India
Source link Zenda, a platform that helps parents pay school fees, receives $9.4 million to expand in India