SUMMARY
The education-focussed NBFC raised the funding from impact investor BlueOrchard Finance
Varthana said it will use the funds to boost its efforts to provide accessible financing solutions to a wider network of affordable private schools across India
Varthana claims to have financed more than 11,000 affordable private schools and facilitated over 16,500 loans for school expansion and renovation
Education-focussed non-banking financial company (NBFC) Varthana said it has raised a debt funding of $10 Mn (approximately INR 83.4 Cr) from impact investor BlueOrchard Finance.
In a statement, Varthana said it will use the funds to boost its efforts to provide accessible financing solutions to a wider network of affordable private schools across India.
Founded in 2013 by Steve Hardgrave and Brajesh Mishra, Varthana offers loans to students and low-budget private schools to support them with digital learning tools.
By empowering these schools with the necessary financial resources, Varthana aims to catalyse positive change and enhance the quality of education provided to millions of students from marginalised communities.
Commenting on the funding, Varthana CEO Hardgrave said, “With this funding, Varthana is poised to expand its reach and support to a larger network of affordable private schools, thereby accelerating our efforts to ensure quality education for every child, regardless of socio-economic background.”
Varthana claims to have financed more than 11,000 affordable private schools and facilitated over 16,500 loans for school expansion and renovation. It claims to have 40 branches and a presence in 16 states/union territories.
Varthana also provides loans to students attending college, technical training/short-term courses, and doing postgraduate studies. It aims to offer loans to over 1 Cr students in the country by 2025.
The funding comes shortly after the startup raised $14 Mn in January this year.
In September last year, it secured a debt funding of $2.5 Mn from Symbiotics Investments via education-focused social bonds. It also secured $7 Mn funding in January 2023 from MicroVest to scale up credit facilities for low-budget private schools.
In the student loan category, Varthana competes with the likes of Leap Finance and Eduvanz. In the educational infrastructure loan space, it locks horns with players such as Auxilo, Ugro Capital, EnableCap, IFSC, among others.
