Hyderabad-based Pax Credit raises $1.2 lakh seed fund
Hyderabad: Hyderabad-based Pax Credit, which helps students pay international university fees, examination fees and education expenses in local currencies, has raised a seed fund of about $1,20,000 (about Rs 87 lakh) from Techstars Hub 71 Accelerator. Pax Credit is now part of the 2021 class of Hub 71 Accelerator, which helps startups develop products faster and adopt the go-to-market strategies.
Hub71 is a tech ecosystem founded by Mubadala Investment Company and is Abu Dhabi’s largest wealth fund and one of the world’s biggest investors. Its three-month accelerator programme will focus on strategy, execution, fundraising and building networks. Pax Credit is one among the ten companies selected for this.
Abhinov Balagoni, founder and CEO of Pax Credit, said, “The inefficiencies in transferring money abroad, student loans, and lack of affordable health insurance product to international students provided Pax Credit an opportunity to offer a service to streamline educational remittances, cross-border student loans and price health insurance accurately.”
The current options available for remitting money come at a high cost. That is because banks and NBFCs have to put more resources even though the transactions are relatively low. “We are trying to digitise operations for parnters like banks. We will pass on this savings to users,” he said adding that it will also shortly start offering services to pay fees for educational institutions in Indonesia and Philippines.
The streamlining is resulting in savings for the students. In the past 36 months, Pax Credit has facilitated transactions worth $4 million (about Rs 29 crore) from about 1,000 students. A large portion of them have preferred to study in the US. Canada, UK, Australia and Germany are among the other popular destinations, he said. “Being part of Hub 71, will open us opportunities in the Middle East and North Africa,” he said.
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