Lending firm Avanse Financial Services (Avan) has raised a primary capital of Rs 800 crore from Kedaara Capital, the firm said a January 19.
The funds would be deployed to expand presence and outreach by lending to Indian students and towards the development of the Indian education ecosystem. Warburg Pincus continues to be the majority shareholder in the company, the statement said.
“The growth capital will enable us to strengthen our brand proposition, integrate digital solutions and innovate to build more depth into our product range as we work towards delivering greater stakeholder value,” founder Amit Gainda said in the statement.
Founded in 2013, Avanse is a tech and education-focused non-banking financial company that aims to provide financing to students. It offers student loans, professional loans like skill enhancement as well as institution loans.
As the world recovers from the coronavirus pandemic, the company was seeing a significant resurgence of students seeking higher education at international locations. The company responded with agility, leveraging technology to develop customised financing solutions to address unique student demands, Gainda added.
The company’s had Rs 8,000 crore worth of assets as of December 2022, reporting a 1.9 time growth over the same period last fiscal.
During the first nine months of FY23, Avanse recorded the highest-ever growth in its loan disbursement at Rs 4,850 crore, delivering around 2.5x growth over the same period of the last fiscal, the company said. It also provided growth and working capital to more than 1,000 educational institutes catering to over more than 5-6 lakh students.
“Kedaara is very excited to partner with Amit and the management team and support Avanse’s continued evolution. We look forward to using our operational expertise and experience in the financial services space to help them realise their long-term vision,” managing partner Sunish Sharma said.
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