Pathfinder raises $12M for education spending

Pathfinder, a Phoenix-based financial technology company that helps families access and manage Education Savings Account (ESA) funds, has raised $12 million in Series A financing led by Portage Ventures, with participation from Reach Capital, Gradient and Stand Together Ventures Lab.

The investment brings Pathfinder’s total funding to $16 million, including a previous $4 million seed round co-led by Reach Capital and Gradient. The company plans to use the new capital to accelerate product development, expand its payment infrastructure and enter additional U.S. markets as education savings programs grow.

Founded by Amaan Ahmad and Sidharth Jain, Pathfinder provides a payment card and technology platform designed to simplify how families use government-supported education funds for eligible purchases.

Since launching in Arizona in March 2026, the company has grown to more than 8,000 accounts, reporting approximately twofold month-over-month growth, largely driven by word-of-mouth referrals.

Arizona serves as Pathfinder’s initial market, with the state’s Empowerment Scholarship Account program supporting more than 108,000 students.

“Arizona is the vanguard for education choice, and we are confident this model can be adapted to other states seamlessly,” said Ahmad, CEO and co-founder of Pathfinder. “As ESA programs grow, the next challenge is infrastructure, making purchases and administrative requirements easier for parents to navigate.”

Pathfinder’s platform combines the Pathfinder Education Visa Charge Card with a mobile application that helps families identify eligible educational expenses, manage receipts and prepare documentation required for reimbursement.

Its AI-powered technology provides real-time guidance on purchase eligibility and automates administrative tasks associated with ESA spending.

The platform also submits reimbursement requests on behalf of families, with state-approved payments used to reduce outstanding card balances.

The card is issued by Column, N.A., which provides funding for card balances with capacity to scale to $100 million as Pathfinder’s program expands.

The arrangement is designed to reduce the need for families to pay eligible education expenses out of pocket while waiting for reimbursement.

Pathfinder’s technology also supports education vendors, which the company said have begun recommending its payment solution to customers during online and in-person checkout.

“School choice is expanding rapidly, but the financial infrastructure supporting these programs has not kept pace,” said Stephanie Choo, general partner and co-head of Portage Ventures.

“Pathfinder is addressing a critical gap by making education funding simpler, more transparent and easier for families to navigate.”

The financing comes as Pathfinder prepares to expand beyond Arizona into additional states offering education savings programs.

The company expects new federal tax-credit scholarship programs scheduled to begin in January 2027, alongside expanded eligibility for certain K-12 expenses through 529 education savings plans, to increase demand for financial tools that help families navigate education funding requirements.

Pathfinder cited an estimated $26 billion annually in potential federal tax-credit scholarships in participating states and more than $600 billion held in 529 plans as part of the broader market opportunity.

The company aims to consolidate access to different education funding programs through a single platform, despite variations in eligibility rules, reimbursement procedures and permitted expenses.

Pathfinder is pursuing money transmitter and servicing licenses to support its expansion and plans to operate in at least six states during 2027.

The company’s founders previously operated a microschool in London, an experience that helped shape their approach to simplifying education-related financial administration.

The Series A financing will support Pathfinder’s transition from an Arizona-focused ESA payment platform into a broader education financing technology business serving families across multiple states.