RedCarpet has raised $2.5 million for student microlending in India.
Lightspeed Venture Partners, fresh off the successful IPO of their portfolio company Snap, led the round.
RedCarpet, based in Gurgaon, India, works with microfinance lenders and non-traditional lenders to offer students who lack access to bank credit loans of between 5,000 and 8,000 rupees ($75 to $120), with no interest for students who repay within one month.
RedCarpet, which launched in 2015 to facilitate students’ access to finance while tackling high loan default rates, sizes India’s student loan market at $8 billion.
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Photo credit: AFP