Zinc, a fintech startup committed to helping Indian students seeking education abroad, has recently emerged from stealth mode and secured $25.5 million (approximately INR 214 crore) in seed funding. This funding round was led by Nexus Venture Partners and also included contributions from Quona Capital, EDBI, Global Ventures, and Saison Capital.
The capital will be used to enhance product innovation, expand AI capabilities, and diversify Zinc’s service offerings, as stated by the company.
“Our comprehensive suite of services equips Indian parents with the necessary tools to confidently invest in their children’s education overseas while alleviating financial pressures,” said Prashanth Ranganathan, Zinc’s founder and CEO.
Founded in 2023 by Ranganathan, Zinc positions itself as an “edu-wealth” startup. It aims to support Indian students studying abroad by providing USD-denominated investment options and specialized financial products designed to help families manage increasing education costs and minimize currency risks.
Zinc has also launched a product suite called ‘Zinc Honors,’ which features an AI-driven advisor named ‘Ada’ to help aspiring students on their overseas educational journey.
The startup has obtained a Registered Investment Advisor (RIA) license from the Securities and Exchange Board of India (SEBI) and received initial approval to operate as a payment service provider (PSP). Additionally, Zinc is in the process of acquiring a brokerage license from the International Financial Services Centres Authority (IFSCA) in GIFT City.
“These licenses allow Zinc to provide personalized investment advice, secure cross-border payment services, and access to global markets, all within a tax-efficient framework,” the company noted.
Zinc aims to become a comprehensive cross-border financial services platform for Indian families, addressing the financial challenges associated with overseas education.
Anup Gupta, Managing Director at Nexus Venture Partners, expressed confidence in the partnership, stating, “Nexus is excited to collaborate with Prashanth and the Zinc team in their mission to support parents and students in achieving their global education goals through a transparent and well-rounded education advisory and financial services platform.”
With Ranganathan’s extensive background in fintech, Zinc aspires to establish itself as a leader in the cross-border education finance sector. Ranganathan previously co-founded PaySense, which was acquired by PayU in 2020, where he later served as the head of PayU Credit. He also co-founded Truvie Security Inc., acquired by PayPal in 2011, and spent four years with PayPal afterwards.
Zinc’s successful fundraising comes at a challenging time for India’s edtech sector, with total funding for Indian edtech startups diving to $283 million in 2023—a stark decline from $2.4 billion in 2022, marking an 88% decrease year-over-year.