Ed Partners Africa, a financing company for affordable private schools, has raised $1.9 million to extend its footprint and provide loans to the underserved affordable private school sector.
The round was led by Acumen, I&P, and Zephyr with participation from existing investors.
Ed Partners is targeting affordable private schools that provide education to the low-income population and charges school fees of between $150 and $500 per year. Additionally, these schools are looking for loans of between $2,000 and $70,000 payable up to six years.
Ed Partners loans are designed for specific end-uses such as the expansion of classrooms, purchase of school buses, building sanitation facilities, etc., and are designed to keep the school cash flows and repayment abilities in mind.
The company, which was founded in 2018 by Lydia Koros and David FitzHerbert, has to date offered $1.5 million in loans to 142 affordable private schools, which educate 41,000 students.
What they are saying
Abdulkarim Mohamed, Portfolio Manager, Acumen said:
“Acumen is thrilled to have Ed Partners join our portfolio, as the first investment under our recently launched Education Facility. Affordable private schools are an important piece in delivering education to African children, however, they have historically been underbanked.
In Kenya, and across Africa, 80%+ of private schools have never accessed a bank loan. Ed Partners’ tailored products enable the most affordable private schools to invest in quality-improving initiatives.
Amos, Lydia, David, and the entire Ed Partners team have demonstrated operational excellence, especially during recent school closures.
Acumen is excited to work alongside Ed Partners to further support schools in improving the quality of education children receive.”
Jeremy Hajdenberg, Deputy Managing Director, Investisseurs & Partenaires said:
“I&P’s investment in Ed Partners marks our growing presence in East Africa, a few months after the launch of our Nairobi-based office. We are proud to support this new investment in the education sector, which makes up one of I&P’s focus areas.
Built on a strong social mission, we believe that Ed Partners has the potential to have an important impact on the education sector in Kenya and in the long term in East Africa.”
Mike Mbari, Investment Manager, Zephyr Acorn, said:
“We are excited to have Ed Partners as part of our portfolio. Ed Partners has experienced remarkable growth since its inception.
By availing financing to affordable private schools, Ed Partners has improved the quality of education to tens of thousands of pupils in the lower-income segment in Kenya and this investment is set to positively impact even more schools and pupils in Kenya and beyond.
Ed Partners will benefit from Zephyrs’ hands-on approach and experience in the education financing sector, having invested in similar successful businesses in India.”
Please, it shouldn’t be for rice alone, but also bringing down the price of all food stuff. Thanks!