Varthana Finance, which counts private equity firm ChrysCapital as an investor, has secured $15 million (about Rs 120 crore) in external commercial borrowing from impact investor BlueOrchard Finance.
The impact investor had earlier infused $10 million into the school and education financier, which is also backed by Kaizen Private Equity, along with a slew of angel investors like Bahram Vakil and Pramod Bhasin, in a funding round in April.
The latest funding will be used to expand Varthana’s lending portfolio, providing private schools and vocational students in Tier 2 and Tier 3 cities with financial support for infrastructure enhancement and skill-based learning initiatives, the company said in a statement.
“These funds (ECB) will allow us to reach more schools and families, enabling them to access the resources they need to create impactful learning environments,” said Steve Hardgrave, chief executive officer, Varthana Finance.
Varthana Finance provides loans to affordable private schools and students pursuing higher education in India.
The assets under management of the Bengaluru-based school financier rose nearly 37% year-on-year to Rs 1,281 crore as on March 31, after shrinking by 15% in the preceding four years. The profit after tax rose by over six-fold to Rs 31 crore in FY24.
The company disbursed Rs 230 crore in April-June, almost double the number recorded a year ago.
In an interaction with VCCircle, Hardgrave said the company intends to disburse Rs 1,600 crore in FY25 and touch an asset base of Rs 2,200 crore.