Jakarta-based student loan platform Danacita, a subsidiary of ErudiFi, has secured $5 million in its Series A round led by Monk’s Hill Ventures and Qualgro, according to a company announcement.
With the new funding, Danacita is targeting to increase its education financing service and reach more students in Indonesia through partnerships with educational institutions. To date, Danacita has partnered with several universities and vocational schools in Indonesia, including President University, Universities Tarumanegara, IT PLN, and Wall Street English.
Danacita director Alfonsus Wibowo said the demand for higher education is increasing annually as Indonesia has entered the Industry 4.0 era. Unfortunately, almost two-third of Indonesian students are unable to continue education due to a lack of financing in education sector.
“Our benchmark is how we can expand the education access for more students in Indonesia to build a better future,” Wibowo said.
Currently, Danacita has recorded a three-fold growth in terms of financing to students in 2020. With the monthly settlement system, Danacita aims to facilitate education financing for more students.
Danacita is also planning to launch a service to help school partners track spending and also help with retention, which is seen as a major challenge in the country where 10-15% of total students drop out.