Last month, Leap raised a $100M debt round, just a few months after raising a $65M Series E to power students globally. 

Searching for the Right Market

Arnav Kumar was a 2x founder before starting Leap.

Graduating from IIT Kharagpur in 2010, Arnav joined Deutsche Bank and later joined the category management division at UrbanTouch.

He started Sokratik in 2013, offering middle school students the opportunity to become active content creators and teachers the ability to explain concepts to students visually. While they could not find the right product-market fit, Arnav was clear on continuing his entrepreneurial journey.

He started GoZoomo, a marketplace for used cars in India. Having raised substantial capital from Elevation Capital (then SAIF Partners) and Apoletto, GoZoomo was competing with Olx in cars but could not scale. Unsustainable unit economics and information asymmetry in the used car segment capped the business's potential. Arnav left the company and joined SAIF’s (now Elevation) investments team in 2016. 

But once a founder, always a founder. Arnav continued researching the next big idea to bring about a revolution.

He noticed that the higher education market was massive and that there was a dearth of financing. He believed that the higher education market was sorted; the payer, the decision-maker, and the user were the same.

Arnav decided to test his hypothesis and continued to speak to people. As his confidence in his hypothesis deepened, his sibling faced issues financing his education abroad.

Arnav immediately saw the gap and rang up his college senior. Vaibhav Singh graduated from IIT Kharagpur ahead of Arnav, and was always inclined towards finance.’

He joined Deutsche Bank and completed his CFA charter. He joined a digital lending company before taking up the role as MD of Partnerships at InCred.

Vaibhav realised that while the demand for higher education infrastructure was very high, the supply side was fragmented, inefficient and opaque. Government bodies regulated this space; public investment in education was low, and technology intervention was nearly nil. The senior-junior duo decided to disrupt this opportunity in 2019.

Leap was born 

Using Finance to Create A Deep Wedge

Pursuing higher education abroad was fraught with issues.

While there were enough participants in the market for higher education counselling, such counselling services were extremely high-priced. These institutes followed a manual approach to guiding students to the right study program, often leading to a mismatch between the candidate's profile, interests, and career choices.

In addition to this, the market had inadequate test preparation resources. There was also no community where global Indian students could help each other out. Last but not least, no financing was available when the journey was costly. 

The aspirations of thousands of Indians were high, but the country's infrastructure was limited to support thi. While around 10L students aspired every year to study abroad, only 3-4L could eventually go, and educational institutes could counsel only 1.5-2L students. 

While the bigger vision was to become a one-stop solution for all needs related to global education, Arnav and Vaibhav decided to solve the most critical first: financing.

Studying abroad was expensive. The gross fees for any program would range around INR 1 Crore, not to mention the living expenses. For an aspirational Indian, this seemed a distant dream without financing. But Leap decided to help students leap across the gap. 

Traditional banks offered education loans, but at exorbitant rates. Depending on the program structure, cost, and the borrower's creditworthiness, banks charged between 12% and 18% annually. In addition, they had rigid collateral requirements, even up to 90%, and eliciting an approval would take a few weeks. On top of it, the approval rate was abnormally low.

Leap aimed to solve this problem. They offered collateral-free loans that were USD-denominated through a US-based lending arm, which allowed them to charge ~5% lower than the usual.

Leap’s moat was simplifying the customer experience. Being new and consumer-first allowed the company to better understand its target group. 

During counselling, they evaluated the candidate's historical profile and interests and mapped their career chart to design the right study program. To process the application, they floated a 10-minute online application, regularly updated the bank offers, and sanctioned the loan in 3 days.

Leap could tailor the loan product according to the students’ needs and offer them access to quality education in major global hubs, including the UK and the US. 

Simplifying this meant that students would start to hear about this. 

Engaged Community+Trusted Lender

Leap’s goal of removing financial barriers for Indians aspiring to study abroad would not go unnoticed.

The company had identified a critically underserved student demographic and infused a tech-first approach to underwriting education loans. In the short time since its start, Leap proved to be faster and more scalable than Banks and NBFCs. 

This was because traditional Indian banks posed two key barriers for students seeking education loans abroad - collateral requirements and manual loan processing. 

Most banks required students to pledge tangible collateral, such as family-owned real estate, or bring in a financially strong co-signer. These conditions would prevent many deserving candidates from middle and lower-income families, particularly in Tier 2 and 3 cities. The loan approval process was heavily paper-driven, involving multiple branch visits, physical document submissions, and lengthy turnaround times that would stretch into several weeks.

Leap tackled both issues head-on with a tech-enabled, student-first approach. 

Using alternative data like academic records, university rankings, and projected earning potential, Leap offered collateral-free loans without co-signers. It also replaced legacy banking bureaucracy with a 100% online application process, allowing students to apply, verify documents, and receive approvals online in just a few days. 

This combination of accessibility and speed gave Leap a decisive advantage over traditional lenders. Early traction with students was evident. In late 2019, Leap closed a $5.5M seed round, a rare achievement in a capital-intensive and highly regulated domain. 

Leap had a clear roadmap for how it would deploy the seed capital. 

They would primarily use the funds to build a proprietary loan underwriting platform. This would involve developing algorithms to assess student creditworthiness, creating automated systems for loan disbursal and repayment, and partnering with banking and NBFC partners to handle the capital-intensive loan deployment.

They would also invest heavily in building a peer-led community of study-abroad aspirants. It would be a content and advisory platform for students to ask questions, share experiences, and seek guidance. The community play would be central to Leap’s “platform” vision as they aimed not just to build a fintech product, but an entire ecosystem for international education. 

Leap would also gradually use a portion of the funds to partner with foreign universities to expand into new markets, including Canada, the UK, and Australia. It was staring at a giant market. 

High-Growth Market 

From 2016 to 2019, the number of Indian students studying abroad almost doubled, from ~420K to ~770K. The number of applicants was far higher, with an acceptance rate of ~60%. 

The outflow growth rate at a 20% CAGR was 6x that of the domestic growth rate, which was a clear indicator of the massive demand in the segment. 

But as the sector entered 2020, it was hit with a sledgehammer. 

As international borders were closed to combat the COVID pandemic, it looked like the movement of students abroad was going to end. Yet, the expectation despite this slowdown was that ~2M students would study abroad by 2025. 

As demand and outflow increased, student expenditures would soar and likely touch $75-85B by 2025, an almost 2X increase from 2019. 

The core student financing market was immense. Each Indian student would typically spend between $25,000 and $50,000 per year in tuition and living expenses. Based on the projected value of outbound students, the total addressable market for higher education financing alone would be over $30B annually by 2025.  

Yet, this would only scratch the surface. 

Ancillary services such as admission counselling, test preparation, accommodation support and health insurance would contribute to a much larger ecosystem. Industry estimates would peg the ancillary market at $50-60B globally, with Indian students forming a significant share due to their volume and spending capacity. 

The pandemic would cause a dip in the outbound student flows due to the imposed travel restrictions and subsequent adoption of remote learning. It would also accelerate digital adoption across verticals, mainly in education and fintech. 

Instead of pausing operations, Leap would use this opportunity to solidify its online platform, expand its content and counseling offerings by forging partnerships with financial institutions and universities, and increase engagement through virtual webinars and peer mentoring. 

At this stage, Leap was primarily focused on cross-border student loans, leveraging tech-driven underwriting and a digital-first model to serve Indian students going to the U.S. Despite the uncertainty caused by COVID-19, Leap's lean CAC and scalable infrastructure helped build investor confidence, and in September 2021, it raised a $55M round.

As restrictions eased in 2021 and demand for overseas education rebounded, Leap was perfectly positioned to capture the demand with its product suite, which was finely tuned to the digital audience. 

The United States would remain the most preferred destination for Indian students, with over 268,000 students in the 2022 academic year, a 35% increase year over year. Universities in the U.S. often had higher tuition fees, making the financing need more acute. Leap’s offering was extremely well-positioned. 

Canada would grow rapidly as an alternative to the U.S. by 2022, with over 320,000 Indians enrolled as of 2022. Work rights during and after education, combined with relaxed immigration policies, made Canada a prime market. 

The platform flywheel that Leap wanted to enable was coming into place.

Platform Play Creates Strong Lock-in

Leap Finance built a strong unit economic foundation by addressing a capital-intensive and underserved problem through a tech-first, vertically integrated model. 

Its unit economics were driven by three core levers: low CAC, substantial lifetime value (LTV), and multiple monetisation touch points across the student journey.

A key differentiator was its community-led acquisition. Unlike traditional NBFCS or banks that relied on expensive paid marketing or DSAs, Leap built digital communities via YouTube, Telegram, and mentorship platforms. This created a high-intent user base nurtured through free content, peer advice, and live webinars, reducing CAC to ₹2,000–4,000, significantly below industry norms.

Leap’s tech-driven underwriting enabled it to serve students with no prior credit history by evaluating future earning potential, academic strength, and admission credentials. 

This effectively allowed for intelligent credit deployment and lower default risk, which meant lower business costs and better student rates.At the same time, Leap accessed low-cost USD capital via U.S. banking partners, lending it out at competitive rates (~8–12%) while retaining a healthy interest spread and origination margin (2–5% of loan size).

Digital KYC and document processing also enabled Leap Finance to onboard students faster, at lower cost, and with reduced fraud risk. It improved funnel conversion, cut turnaround times, and allowed scalable operations across India. This automation was key to Leap’s low-CAC, high-efficiency lending model in the cross-border education finance.

The company’s bundled ecosystem approach boosted LTV. 

Starting with IELTS/GRE prep, Leap monetised through loans, visa services, forex cards, and post-arrival support like jobs and insurance. A single student could generate revenue across 3–5 product lines, without additional CAC. These cross-sell opportunities improved gross margins and reduced payback periods.

Leap’s repayment rates remained high due to its focus on students in high-ROI programs abroad (e.g., STEM in the U.S.), often backed by job offers post-graduation. This discipline kept non-performing assets low, enhancing capital efficiency. 

The founding team’s background in credit became a significant reason in ensuring this infrastructure was well built. 

Tackling Global Uncertainty & Regulatory Ambiguity

In 2022, Leap Finance began to evolve from a financing-first model into a full-stack global education platform.

While it had initially focused on providing no-collateral education loans to Indian students studying abroad (mainly in the U.S.), the company transitioned toward a broader ecosystem approach. 

It launched new products, Leap Scholar - to engage students earlier via test prep, admissions support, and visa guidance and Leap Club - a peer-led community that reduced CAC and enhanced trust in a remote-first environment. 

Leap expanded into visa support and accommodation services to meet the segment’s needs. It also partnered with global and Indian players to offer health and travel insurance, international SIM cards, and other travel essentials.

In mid-2022, Leap secured over $100 million with a mix of debt and equity. Given the nature of the business, it would raise both equity and debt financing. Strong engagement and early monetisation made Leap attractive to growth investors.

This expansion, however, came with substantial challenges. 

A tightening global macro environment—particularly rising U.S. interest rates—drove up Leap’s cost of capital and compressed its lending margins. Accessing debt from U.S. banking partners became more difficult and expensive. Simultaneously, volatility in international student mobility, including U.S. and Canadian visa delays in 2022–23, caused disruptions in loan disbursals and demand predictability.

A tightening world, where capital and talent had constraints, was not good for Leap.

Building a full-stack platform also required significant operational investment. Leap had to scale teams for counselling, content, tech, and community management, increasing short-term burn rates. Monetising non-core services like test prep and counselling was challenging in a market with strong free alternatives and low conversion rates.

Trust-building was another barrier. As a digital lender with limited physical presence, Leap faced initial reluctance from students and parents. This led to its push for community-led acquisition via Leap Club, which offered peer support and expert access. However, coordinating delivery across multiple services (loans, prep, insurance, etc.) often created handoff friction and an inconsistent user experience.

Regulatory ambiguity was also a risk. Leap operated between Indian and U.S. financial frameworks without being a formal NBFC or regulated bank, making it vulnerable to evolving cross-border and digital lending norms, especially post-2022 RBI scrutiny.

Despite these hurdles, Leap’s ecosystem strategy positioned it as a category-defining player in global edtech, with diversified revenue streams and a scalable, trust-led acquisition engine.

It had to keep pushing even if the going was getting tough.

Student-First Approach In a Competitive Market

By the start of 2023, Leap was no longer the only player in the study-abroad financing game.

The category had grown rapidly, attracting a mix of fintech startups and NBFCs eager to tap into India’s INR 1 lakh Cr. overseas education loan market. NBFCs alone commanded a 35% share.

The competition was diverse. Players like Leverage Edu, Kuhoo, Credenc, Financepeer, Grayquest, and Eduvanz, and global lenders like Mpower Financing offered tailored products. Traditional NBFCs like Auxilo, Avanse, and HDFC Credila dominated legacy loan segments with large balance sheets and distribution muscle.

On paper, most lenders offered what students needed—faster turnaround, no collateral, and digitally enabled onboarding. But the market was fragmented. Few provided the kind of integrated experience global students wanted.

This is where Leap stood apart. It never claimed to be just another loan provider. Having gone through the pain points themselves, the founders built Leap with a student-first approach from day one.

Its key differentiator lies in its full-stack ecosystem, which offers everything from application support and test prep to visa help and loan servicing. The goal was not just disbursing a loan but accompanying the student through their overseas journey.

A significant 2024 milestone was Leap’s partnership with Mastercard. Together, they launched an AI-powered remittance tool called LOLA. The tool, accessible via WhatsApp and voice, simplified global money transfers for students and families unfamiliar with traditional banking systems.

By 2024, Leap had supported over 250,000 students, up from ~5,000 in its early lending-only phase. LOLA could answer queries, execute transfers, and offer financial education—all through a simple, conversational interface. This feature improved accessibility and significantly reduced remittance friction.

Leap made strategic hires across risk, product, and ops to cement its positioning. It also partnered with universities, lenders, and immigration consultants to build an entrenched ecosystem.

While competitors continue to raise capital and expand offerings, Leap’s differentiation was in owning the relationship, not just the transaction. Its north star remained the same: solve students' problems, and everything else would follow.

Sustaining Dominance

By the end of 2024, Leap emerged as a category leader in the study-abroad space. It had disbursed almost $250m in cumulative loans. 

Beyond the disbursements, it has partnered with 1K+ educational institutions worldwide and has facilitated millions of community interactions, fueling network effects.

Over time, Leap’s revenue model has also matured. Lending, which once contributed over 90% of revenue, now accounts for ~60%. The remaining 40% comes from value-added services such as SaaS tools for counsellors, premium student offerings, and cross-border products like remittances and forex. These newer verticals have diversified the revenue base and improved overall margins.

Leap has grown 5x over the three years ending FY24 from modest beginnings. Its annualised revenue run-rate has crossed INR 200 Cr, with EBITDA margins steadily improving due to better cohort behaviour, efficient capital deployment, and embedded cross-sell. Notably, counselling now brings in slightly more revenue than lending - a rare fintech dynamic reflecting Leap’s growing trust as a student-first platform.

Strategic acquisitions played a pivotal role in Leap's expansion. In April 2021, Leap acquired Yocket, a tech-first platform connecting students with international universities, enhancing its digital outreach and community engagement. Subsequently, in May 2022, Leap acquired GeeBee Education, a well-established study-abroad consultancy, strengthening its offline presence and counselling capabilities.

Leap has expanded its international footprint beyond India and the US. As of early 2025, it operates in 11 countries, including the Philippines, Vietnam, Bangladesh, Nepal, and Nigeria, and it plans to deepen its presence in these markets.

However, challenges remain. Tariff tensions and visa policy changes in the US are introducing volatility. Leap has had to recalibrate some projections and tighten its US exposure. However, its diversified country exposure and flexible loan structuring are helping mitigate short-term shocks.

Despite near-term headwinds, Leap remains ahead of the curve. Its diversified model, strong brand affinity among Indian students, and robust tech stack position it well for its long-term ambition to become the bank, university, and community platform—all rolled into one—for global Indian youth and, increasingly, students across emerging markets.

What is beneficial for Leap is that it operates between talent-dense young India and the talent-hungry ageing West. 

Powering a Global Ambition

Leap has evolved from a loan provider into a full-stack international student mobility platform. 

Its portfolio now includes Leap Finance, Leap Scholar, GeeBee, and Yocket, each addressing a different pain point in the study-abroad funnel.

In January 2025, Leap raised $65M in a Series E round. The funding will support expansion into China, Malaysia, and Taiwan and deepen Leap’s presence in Bangladesh, Sri Lanka, West Asia, and Southeast Asia. It was now valued at almost $750M. 

In March 2025, Leap Finance secured a $100M debt line to power its next wave of growth - funding more students, entering new geographies, and expanding capital partnerships.

Backed by this capital infusion, Leap is doubling down on AI. Its goal is to slash the information overload students face by delivering smart, contextual, and personalised guidance. From admissions to job support, AI is being embedded across touchpoints.

These funds will also fuel the company’s plans to launch new verticals in law and medicine, two high-ticket but underserved global education segments. The company will also scale its post-study offerings, such as career support and relocation services.

Leap is also in late-stage talks to acquire Prodigy Finance, a UK-based fintech that provides collateral-free education loans to international postgraduate students in 150+ countries. If successful, this would cement Leap’s positioning as the leading global study-abroad financing platform.

Leap has gone from identifying a problem to reshaping the category in just five years. From a niche lender, it has become a full-service platform for Indian students studying abroad.

Its model is rooted in trust, technology, and community — a combination that has helped Leap rise above a crowded field. Solving real student problems with empathy and precision has built long-term brand equity.

With funding momentum, operational maturity, and an expanding global footprint, Leap is chasing a bigger dream - becoming the default operating system for international student mobility.

The road ahead will have challenges. But if the last few years are any indication, Leap is not just ready -  it is already a step ahead.

Leap could truly create the operating system that powers student mobility, from India to the world.

Writing: Keshav, Nikhil, Raghav, Varun, Vishal and Aviral Design: Omkar