Elleve, a Brazilian educational credit fintech that offers a tech platform to connect students to educational institutions and the labor market, announced on Wednesday it raised BRL 28 million in its first investment round led by partners of the fintech itself and private investment funds with stakes in the educational market, as well as startups.
According to the fintech, the resources will be used in artificial intelligence, hiring and training of teams and in the sustainable financing model. The startup also issued debentures totaling BRL 123 million, which will be invested over the next 18 months.
In its first year of operation, the company wants to attract and impact 6,000 students and reach more than 30,000 by 2022. To date, there are already 60 schools adherent and linked to its funding programs such as Impacta, Mentorama, Be Academy, FM2S, 4ED, Ironhack, among others, which together already account for more than 40,000 students.
Founded in 2020, Elleve offers students rates ranging from 0% to 1.99% per month, depending on the program. According to the company, the model allows access to young people, regardless of their socio-economic situation in professionalization courses, generating employment and income in the future. For schools and educational institutions, the customized solution enables a higher number of students to be captured, a reduction in the dropout level, and the anticipation of tuition fees.
“Traditional higher education has long ceased to be the only option for professional success. The more specialized professional education, through free or technical courses, is a shorter and more tangible path, so we were able to make it much more accessible, easily and quickly to an audience that, until now, is largely developed only through ‘life experience’,” says the entrepreneur.
With the use of AI, even students with negative or no credit history are able to finance the courses. For this reason, Elleve has in its process the curation of partner schools, ensuring that the student’s effort will in fact bring gain in their professional journey, as well as their choice.
“The higher the impact potential of a course, in addition to other factors, the more permissive our credit analysis will be to students. We inspire and help the young person to lead their professional path in a promising way, whatever their vocation or socioeconomic heritage, besides being an opportunity to break into a segment lacking in accessible and creative financial options,” he says.
According to the founder, Elleve’s financial solution with affordable interest rates benefits both schools, by reinforcing the cash flow and increasing enrollment, and students, by allowing them to enroll in these courses and the return on investment that is reflected, later, in their employability.