Nairobi-based affordable private schools financing company, Ed Partners Africa, has raised $1.9 million for expansion and enabling the unserved affordable private schools market access to credit.
Investors who took part in the raise include Acumen, I&P and Zephyr, with participation from existing investors.
According to the firm, they will use the funds to help catalyse lending to the private schools sector at this critical time when it is recovering from COVID-19.
Further, Ed Partners targets affordable private schools that provide education to the low-income population and charge school fees of between KSh16,000 and KSh54,000 per year. Further, these schools are looking for loans between KSh200,000 and KSh7 million, payable up to six years.
Ed Partners loans are designed for specific end-uses, including purchasing school buses, building sanitation facilities, expanding classrooms, etc. In addition, they are designed to keep the school cashflows and repayment abilities in mind.
Ed Partners was founded in 2018 to improve access to affordable quality education in Africa. The company provides loans to affordable private schools by bringing access to formal credit to their doorsteps. So far, the company has cumulatively disbursed $1.5 million to 142 schools reaching out to 41,000 students.
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