Prashanth Ranganathan, cofounder of PaySense and former CEO of PayU Credit, has launched his new fintech startup Zinc, which focuses on overseas education. Zinc has successfully raised $25.5 million (approximately INR 214 Crore) in seed funding, led by Nexus Venture Partners. This latest development marks Zinc’s emergence from stealth mode and sets the stage for its expansion.
In addition to Nexus Venture Partners, the funding round saw the participation of prominent investors such as Quona Capital, EDBI, Global Ventures, and Saison Capital. Zinc is positioning itself as a key player in the overseas education financing space, offering a comprehensive range of financial services tailored for Indian families navigating the complexities of cross-border education.
Licenses and Regulatory Approvals
A crucial milestone in Zinc’s journey is securing its Registered Investment Advisor (RIA) license from the Securities and Exchange Board of India (SEBI). This license allows the startup to offer personalized investment advisory services to clients. Furthermore, Zinc has obtained in-principle approval to operate as a Payment Service Provider (PSP), enhancing its ability to facilitate secure cross-border payments.
Additionally, Zinc has applied for a brokerage license from the International Financial Services Centres Authority (IFSCA) in GIFT City, India’s hub for international financial services. With these regulatory approvals, Zinc is positioned to offer a wide array of financial services, including global market access and secure payments, all within a tax-efficient framework.
Zinc’s Vision: Supporting Indian Families with Overseas Education
Zinc aims to be a full-stack cross-border financial services platform for Indian families. Its mission is to simplify the often complex process of financing overseas education by providing a combination of education advisory and financial services. This one-stop solution offers parents and students the guidance and financial tools they need to achieve their global education goals.
Zinc’s broad suite of services includes personalized investment strategies, cross-border payment solutions, and seamless access to international markets—all crucial for families looking to support their children’s education abroad.
Nexus Venture Partners’ Commitment
Anup Gupta, Managing Director of Nexus Venture Partners, expressed excitement about the partnership with Prashanth Ranganathan and his team at Zinc. Gupta highlighted Zinc’s vision to deliver a comprehensive platform that addresses the financial challenges of overseas education in a transparent and structured manner.
“Nexus is delighted to partner again with Prashanth and Team Zinc in their vision to support parents and students in realizing their global education goals with a best-in-class combination of education advisory and financial services,” said Gupta.
Leveraging Fintech Expertise
Zinc will tap into Ranganathan’s extensive experience in fintech to scale its offerings and carve out a niche in the cross-border financial services space. His previous ventures, including PaySense, which was acquired by PayU in 2020, and Truvie Security Inc, which was acquired by PayPal in 2011, showcase his deep understanding of fintech and cross-border payments. This expertise positions Zinc to thrive in the education-focused financial services market.
Ranganathan’s time at PayPal, where he served for four years following the acquisition of Truvie, provided him with significant experience in cross-border transactions, an expertise he brings to Zinc’s platform. After stepping down as CEO of PayU Credit in 2023, he has now fully committed to Zinc’s mission of supporting Indian families with overseas education.
Zinc’s Expansion Strategy
With the $25.5 million seed funding, Zinc plans to scale its operations and enhance its product offerings. The startup’s regulatory approvals and strategic partnerships will help it establish a solid foundation in the fintech space. Zinc’s end-to-end platform will provide Indian families with the financial resources and advisory services they need to make informed decisions about overseas education.
A Challenging Landscape for Indian Edtech
Zinc’s seed funding comes at a time when the broader Indian edtech sector is experiencing a downturn. In 2023, Indian edtech startups raised only $283 million, a steep 88% decline compared to the $2.4 billion raised in 2022. Despite this challenging environment, Zinc’s focus on financial services for overseas education sets it apart from traditional edtech ventures and positions it for growth in a niche yet highly significant sector.
