IPO-bound Avanse, backed by Warburg Pincus, raises Rs 1,000 crore in funding round led by Mubadala

On November 30, Moneycontrol was the first to report that IPO bound Avanse was looking to raise Rs 1,000 crore in primary capital from a private equity player or a pre-IPO investor

Warburg Pincus- and Kedaara Capital-backed Avanse Financial Services, an education-focused non-banking financial company (NBFC), announced on March 26 that it has raised primary capital of Rs 1,000 crore. This round of funding was led by Mubadala Investment Company, an Abu Dhabi-based investment company, with participation from Avendus PE Investment Advisors Private Limited through its fund Avendus Future Leaders Fund II.

On November 30, Moneycontrol was the first to report that IPO-bound Avanse was looking to raise Rs 1,000 crore in primary capital from a private equity player or a pre-IPO investor.

"The fund infusion will enable Avanse to strengthen its position in the rapidly evolving education financing segment by focusing on creating unique customer experiences and achieving sustained profitable growth. As of December 2023, the company’s assets under management (AUM) stands at Rs 12,147 Cr," the firm said.

“Avanse will continue to enable young generations of Indian students to fulfil their aspirations. We are thrilled to partner with Amit and the management team of Avanse alongside institutions of the caliber of Warburg Pincus, Kedaara Capital and the International Finance Corporation. We look forward to further enabling the growth of the business," said Luca Molinari, Head of Asia and Financial Services at Mubadala.

Narendra Ostawal, Managing Director and Head of India, Warburg Pincus, said: “Avanse, driven by its vision to democratise education in India, has transformed into one of India’s premier education finance companies. As patient growth investors, we remain committed to supporting Amit and his team in continuing to scale Avanse — a commitment that has been central to our partnership. We are thrilled to collaborate with Mubadala Investment Company as Avanse continues to advance its long-term objectives.”

Commenting on this development, Amit Gainda, Managing Director & CEO, Avanse Financial Services, said, “We are delighted to welcome our new strategic investors, who share a common vision of strengthening the education financing segment in India. 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.”

Nomura Financial Advisory and Securities (India) Private Limited acted as the exclusive financial advisor to the company, AZB & Partners represented the company, and Warburg Pincus as legal counsel. Khaitan & Co. and Latham & Watkins LLP acted as legal counsel to Mubadala. JSA acted as legal counsel to Avendus Future Leaders Fund II.