Rang De, India’s pioneering and only peer-to-peer lending platform focused on providing timely and affordable credit to unbanked communities, has joined forces with EdTech unicorn Physics Wallah to launch its first education-focused fund, the Physics Wallah Fund. This partnership aims to provide students access to affordable, collateral-free education loans tailored for the PhysicsWallah Institute of Innovation (PW IOI), a four-year residential program specializing in Computer Science and AI.
Rang De was founded in 2008 with the goal of revolutionizing credit availability and enabling last-mile financial inclusion. The platform uses empathy and technology to allow users to invest in first-time borrowers, such as farmers, entrepreneurs, and students from low-income households who are financially excluded. It offers a once-in-a-lifetime opportunity for individuals to make social investments. Rang De’s innovative social investing strategy is an instant hit for a global Indian who wants to contribute without relying on charity. Unlike traditional charity, social investing allows its social investors to reinvest their repayments, creating an eternal cycle of influence.
Speaking on the partnership, Co-founder & CEO of Rang De, Smita Ram, said:
We at Rang De believe that quality education is a fundamental right for everyone, regardless of their financial situation. Since its inception, we have been committed to democratizing access to credit and empowering people to improve their lives. Aligned with the core values of our platform, we firmly believe that this partnership can usher in significant transformation within the realm of education.
Through this initiative, both Rang De and Physics Wallah will be able to expand education opportunities and act as a catalyst for fostering educational equality. The joint commitment aims to create a lasting impact by transforming the landscape of education accessibility.
Prateek Maheshwari, Co-founder of Physics Wallah, commented:
The collaboration will enable each student to access an average of Rs three to Rs four lakh worth of collateral-free loans through funds invested by social investors (lenders on Rang De’s platform), which can be repaid upon the completion of the course. This partnership is a pivotal step towards realizing our mission of democratizing education at scale in India.
Physics Wallah, the brainchild of Alakh Pandey and Prateek Maheshwari, began its journey in 2016 as a YouTube channel to coach JEE and NEET aspirants. The platform offers online courses and offline and hybrid coaching through its Vidyapeeth and Pathshalas across India. After obtaining $100 million in its first round of funding from WestBridge Capital and GSV Ventures at a valuation of $1.1 billion, the firm became India’s 101st unicorn in June 2022.
