Avanse Financial Services Ltd, an education-focused non-banking financial company (NBFC), Tuesday said it has raised Rs 1,000 crore (around $120 million) in a funding round led by Abu Dhabi-based investment firm Mubadala Investment Company.
Financial advisory services provider Avendus’ private equity arm Avendus PE also participated in the funding round through its Avendus Future Leaders Fund II.
Previously, Avanse raised primary capital of Rs 800 crore (around $98.5 million) from homegrown private equity firm Kedaara Capital.
It also raised Rs 390 crore ($48.7 million) from its existing backers - US-based private equity player Warburg Pincus and IFC, the private investment arm of the World Bank, in 2022.
The capital will help the company strengthen its position in the rapidly evolving education financing segment by focusing on creating unique customer experiences and achieving sustained profitable growth, Avanse said in a release.
Avanse provides education loans to students as well as growth and working capital to Indian educational institutions. As of December 2023, the company’s AUM (asset under management) stood at around Rs 12,147 crore.
The investors have not only recognised the profound impact of making education financing accessible and affordable but also believe in our brand ethos and our core belief that no deserving student should miss an opportunity to access quality education, said Amit Gainda, managing director and chief executive officer of Avanse.
“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,” said Gainda.
While Nomura Financial Advisory and Securities (India) Pvt Ltd acted as the exclusive financial advisor to the company, AZB & Partners represented the company. Warburg Pincus. Khaitan & Co. and Latham & Watkins LLP acted as legal counsel to Mubadala and JSA acted as legal counsel to Avendus Future Leaders Fund II.
