Munich-headquartered Lendorse, an innovative social impact fintech focused on education financing, has secured €10 million in debt financing from the Swiss i2 Group. The capital will enable the company to provide access to higher education in Europe for over 1,000 talented students from developing and emerging countries.
What role does it play?
Education is increasingly becoming a privilege reserved for those who can afford it. Many bright, talented individuals from developing countries are unable to pursue higher education in Europe due to financial barriers. Lacking collateral, credit history, or co-signers, they are unable to secure loans for their education, effectively shutting them out of the European financial system simply because of their geographic origin. The unequal access to education is a social injustice that Lendorse seeks to change.
Who is behind Lendorse?
Founded in 2022 by Björn Wolf (former McKinsey and COO of the unicorn Knuspr) and Evgenii Avdeev (serial entrepreneur of four successful companies), Lendorse has a skilled team comprising former bankers, risk specialists, and lawyers.
‘Study Now, Pay Later’ model
The German startup enables highly talented students from developing and emerging countries to study in Europe. It offers a ‘Study Now, Pay Later’ model based on Income Share Agreements (ISAs). This approach overcomes traditional barriers such as credit checks or the need for collateral, which often prevent students from accessing education.
Students repay the support they receive only after graduation, as a percentage of their future income once they exceed a certain income threshold. In addition to the educational expenses, the company also finances relocation or other expenses.
The European Investment Fund (EIF) also supports the company by securing defaults up to a certain amount. This reduces the financial risk for Lendorse and allows them to offer better terms to students.
The company has long-standing partnerships with blocked account provider Expatrio and universities such as HSG St. Gallen, Stockholm School of Economics, INSEAD, and others.
“This financing is a crucial step for Lendorse and our mission to break down financial barriers and enable more students to access education,” said Bjoern Christian Wolf, CEO & Co-Founder of Lendorse. “Thanks to the support of the i2 Group, we can further expand our sustainable business model and significantly increase our reach in Europe.”
