Tuesday, July 23, 2024
Funding News

Avanse Financial Secures ₹1 Billion in Growth Capital to Fuel Education Financing Expansion

Mumbai, India – March 28, 2024 – Avanse Financial Secures ₹1 Billion in Growth Capital to Fuel Education Financing Expansion Avanse Financial Services Ltd. (“Avanse”), a leading non-banking financial company (NBFC) specializing in education loans, has successfully secured ₹1,000 crore (approximately USD $125 million) in fresh capital. This strategic funding round will empower Avanse to accelerate its growth trajectory within the education financing sector, focusing on market share expansion, enhanced customer experiences, and long-term sustainability..

Avanse Financial Secures ₹1 Billion in Growth Capital to Fuel Education Financing Expansion

Advancing Educational Aspirations Nationwide.

“We are thrilled to welcome these new strategic investors who share our unwavering commitment to fortifying the education financing landscape in India,” said Amit Gainda, Managing Director and CEO of Avanse Financial Services. “We also extend our sincere gratitude to our existing shareholders, Warburg Pincus, Kedaara Capital, and the International Finance Corporation, for their continued support.”

Established in 2013, Avanse has solidified its position as a prominent player in education financing. The company offers a comprehensive portfolio of student loans catering to diverse educational pursuits. From financing international higher education to supporting domestic studies and skill development initiatives, Avanse strives to make quality education accessible to deserving students across all socio-economic backgrounds. Avanse’s mission extends beyond simply providing loans. The company prioritizes a seamless and stress-free loan application process, acknowledging the financial concerns faced by students and their families. Additionally, Avanse offers financial literacy workshops and guidance, equipping students with the knowledge and skills to navigate their finances effectively throughout their educational journeys.

Investor Confidence in Avanse’s Mission-Driven Approach

“Our new investors recognize the profound impact of facilitating accessible and affordable education financing,” elaborated Mr. Gainda. “They strongly endorse our core values and unwavering commitment to ensuring that financial limitations never obstruct a student’s pursuit of quality education, irrespective of their social background or co-borrower’s financial standing.”

A Proven Track Record and Ambitious Vision for the Future

Narendra Ostawal, Managing Director and Head of India for Warburg Pincus, a long-standing investor in Avanse, expressed his enthusiasm. “Avanse’s assets under management (AUM) have reached a significant milestone of ₹12,147 crore as of December 2023,” he stated. “Driven by their vision to democratize access to education in India, Avanse has transformed into one of the nation’s premier education finance companies. We are excited to collaborate with Mubadala Investment Company as Avanse continues to propel its long-term objectives.”

The funding round was led by Mubadala Investment Company, a prominent sovereign investor headquartered in Abu Dhabi. Avendus Future Leaders Fund II, managed by Avendus PE Investment Advisors Private Limited, also participated in the investment.

Investing in the Future: Technological Innovation and Social Impact

Avanse intends to strategically allocate a portion of the new capital towards technological advancements. The company aims to further streamline its loan application process, ensuring a faster and more user-friendly experience for students. Additionally, Avanse will explore the development of mobile applications and online platforms to enhance accessibility and convenience for its expanding customer base.

Looking ahead, Avanse remains deeply committed to its social impact initiatives. The company is dedicated to expanding its reach into underserved communities and rural areas, ensuring that students from all walks of life have the opportunity to access quality education and build brighter futures. By combining its robust financial expertise, cutting-edge technological advancements, and unwavering social responsibility, Avanse is well-positioned to become a transformative force in shaping India’s education landscape.

This is significant capital infusion empowers Avanse to expand its reach, refine its customer offerings, and establish itself as an even more pivotal force in empowering India’s future generations through accessible and affordable education financing solutions.

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