Avanse Financial Services Ltd., India’s new age, technologically advanced, education-focused non-banking financial company (NBFC), announced that Kedaara Capital, a leading private equity firm, will infuse ₹800 Cr. in Avanse to fund its strong secular growth. The fund-raise will be deployed to expand its presence and outreach to a larger number of deserving Indian students enabling them to fulfil academic aspirations and towards greater development of the Indian education ecosystem. Warburg Pincus continues to be the majority shareholder in Avanse.
Avanse has been on a strong growth trajectory, playing a transformational role in the education financing segment. The company’s AUM stands at ~₹8,000 Cr. as of December 2022, reporting a 1.9x growth over the same period last fiscal. During 9MFY2023, Avanse witnessed the highest-ever growth in its loan disbursement of ~₹4,850 Cr., delivering ~2.5x growth over the same period last fiscal. As a student-centric organisation, Avanse has fulfilled the educational dreams of over ~3 lakh academic aspirants across 3,000+ institutes and 25,000+ courses in over 50 countries. The company also provided growth and working capital to 1000+ educational institutes catering to over ~5-6 lakh students.
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Mr. Amit Gainda, Managing Director & CEO, Avanse Financial Services, said, “While Warburg Pincus & IFC continue to be supportive partners in our journey, we are now delighted to have Kedaara Capital on board. Avanse is at an exciting phase of growth as we continue to fulfil our mission of providing education financing to students passionate about accessing high-quality education. As the world recovered post the pandemic, we witnessed a significant resurgence of students seeking higher education at international locations. We have responded with agility, leveraging technology to develop customised financing solutions to address unique student demands. 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.”
Narendra Ostawal, Managing Director, Warburg Pincus & Non-Executive Director, Avanse Board, said, “Avanse has remained true to its commitment of fulfilling the right to quality education. The team led by Amit has delivered commendable performance over the last three years as India navigated through the pandemic. The Indian education finance segment is witnessing strong secular growth, and we look forward to providing continued support to Amit and his team towards achieving their goal of democratising education and education financing.”
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Commenting on the investment, Sunish Sharma, Managing Partner and Co-CEO, Kedaara Capital said, “Kedaara is very excited to partner with Amit and the management team and support Avanse’s continued evolution. We look forward to using our operational expertise and experience in the financial services space to help them realise their long-term vision.” Kartikeya Kaji, Managing Director, Kedaara Capital added, “The fresh primary infusion will significantly improve the company’s capitalisation, providing a strong base for future growth.”
Avendus Capital acted as the exclusive financial advisor for the transaction, and AZB & Partners represented the Company, and Warburg Pincus as legal counsel. Khaitan & Co. acted as legal counsel to Kedaara Capital.
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