Founded in 2020 by André Dratovsky, Elleve is a student loan fintech that aims to expand access to free, technical, and professional courses, of short and medium duration. Through a technological platform, the student connects directly with the educational institution and the labor market.
Looking at the shortcomings of the traditional undergraduate model, Dratovsky realized that one of the biggest obstacles in the industry was the financial tools offered to students. By analyzing these gaps, the fintech CEO decided to explore what the students were missing to achieve their financial and career goals.
In its first year of operation, the company faces the challenge of attracting and impacting six thousand students and reaching more than 30 thousand in 2022. To date, there are already 60 participating schools linked to financing programs such as Impacta, Mentorama, Be Academy. , FM2S, 4ED, Ironhack, among others that, together, already have more than 40 thousand students.
Elleve: Successful First Investment Round
The student loan fintech Elleve has just received an investment of R $ 28 million, led by partners from the fintech itself and private investment funds with participation in the educational market, as well as startups.
The startup’s first investment round will be applied to the expansion of artificial intelligence technology and the hiring and training of teams within a sustainable financing model. The startup also issued debt for a total of R $ 123 million, which will be contributed over the next 18 months.
For the founder and CEO of Elleve, the contribution will strengthen the growth in the volume of funded students. “Even in the pandemic, we saw 100% growth in loan applications month-over-month. The pandemic has accelerated the development of hybrid education and distance learning, ”explains Dratovsky.
Giving a chance to students
With classes suspended in all teaching modalities due to the pandemic, online classes became part of the routine for thousands of students. Even before the pandemic, according to data from the 2017 EAD Census, there were more than 3 million students enrolled in free distance education courses, whether corporate or not. In response to federal deputies in August 2020, the Ministry of Education (MEC) said it cannot say how many students are currently attending online classes.
“Traditional higher education has long ceased to be the only option for career success. More specialized professional training, through free or technical courses, is a shorter and more tangible path, so that we can make it much more accessible, easy, and fast to an audience that, to this day, is developing in great numbers. only through ‘life experience’ ”, adds Dratovsky.
Fintech fees range from 0% to 1.99% per month, depending on the chosen program. The model allows access to vocational training courses regardless of socioeconomic status. Fintech understands that young people generally do not have a credit history, which makes it difficult to access education in general. After the student searches for one of the partner institutions, the financing option will be offered through the Elleve platform, which takes less than five minutes to complete.
Studen loans boosted by AI
With the use of artificial intelligence, even students who are negative or have no credit history get funding for courses. To do this, Elleve, in alliance with the schools, adopts a curatorial process that will ensure that the student makes a choice that guarantees fruits in their professional career and that subsequently reflects her own employability. For schools, the service offered by Elleve allows attracting more students and reducing the dropout rate.
“The greater the potential impact of a course, in addition to other factors, the more permissive our student credit analysis will be. We inspire and help young people to lead their careers in a promising way, whatever their vocation or socioeconomic situation, as well as being an opportunity to explore a segment that needs affordable and creative financial options ”, says André.
According to a survey by the World Economic Forum, the main areas where the most promising careers are concentrated are Health, Data and Artificial Intelligence, Engineering and Cloud Computing, Green Economy, People and Culture, Product Development, Sales, Marketing, and Content. These new areas can create up to 1.7 million new opportunities in 2020.
For André, the pandemic showed a sense of urgency in people, especially to education. “With remote work and online courses, people started taking risks to get these certifications as they were cheaper and faster in comparison.