Mumbai, India – March 28, 2024 – Avanse Financial Services Secures ₹1,000 Crore Funding to Propel Education Financing Mission Avanse Financial Services Ltd. (Avanse), a leading non-banking financial company (NBFC) specializing in education loans, has successfully concluded a funding round securing ₹1,000 crore (approximately $125 million) in fresh capital. This strategic investment will propel Avanse’s ambitious growth trajectory, focused on expanding market share in the education financing sector, enhancing customer experiences, and achieving long-term sustainable growth.
Avanse Financial Services Secures ₹1,000 Crore Funding to Propel Education Financing Mission
Empowering Educational Aspirations Nationwide
Amit Gainda, Managing Director and CEO of Avanse Financial Services, expressed enthusiasm about the company’s strategic direction. “We are delighted to welcome new strategic investors who share our vision of bolstering the education financing landscape in India,” he stated. “We also extend our sincere appreciation for the continued support of our existing shareholders, Warburg Pincus, Kedaara Capital, and the International Finance Corporation.”
Founded in 2013, Avanse has established itself as a prominent player in education financing. The company offers a comprehensive suite of student loan products catering to diverse educational needs. From financing international higher education to supporting domestic academic pursuits and skill enhancement initiatives, Avanse aims to make quality education accessible to all deserving students. Avanse extends its commitment beyond simply providing loans. Recognizing the financial anxieties students and their families face, the company strives to create a seamless and stress-free loan application process. Additionally, Avanse offers financial literacy workshops and guidance, equipping students with the knowledge and skills necessary for effective financial management throughout their educational journeys.
Investor Confidence in Avanse’s Mission-Driven Approach
“Our new investors recognize the profound impact of making education financing accessible and affordable,” elaborated Mr. Gainda. “They believe in our core values and unwavering commitment to ensuring financial limitations never hinder a student’s pursuit of quality education, irrespective of their socio-economic background or co-borrower’s financial circumstances.”
Proven Track Record and Ambitious Future Goals
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 education in India, Avanse has transformed into one of the country’s premier education finance companies. We are thrilled 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 leading sovereign investor based in Abu Dhabi. Avendus Future Leaders Fund II, managed by Avendus PE Investment Advisors Private Limited, also participated in the investment plan.
Investing in the Future: Technology and Social Impact
Avanse plans to strategically allocate a portion of the new capital towards technological advancements. The company aims to further streamline its loan application process, making it even faster and more user-friendly for students. Additionally, The Avanse will explore the development of mobile applications and online platforms to enhance accessibility and convenience for its customer base.
Looking ahead, The Avanse remains committed to its social impact goals. 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 financial expertise, technological innovation, and unwavering social responsibility, Avanse is well-positioned to become a transformative force in shaping India’s education landscape.
This fresh infusion of capital empowers Avanse to expand its reach, refine its customer offerings, and become an even more pivotal force in empowering India’s future generations through accessible and affordable education financing solutions. in Education Financing Mission.
