Education Lender Auxilo Secures Rs 50 Crore in Debt Funding
Auxilo, a Mumbai-based non-banking financial company (NBFC) focused on education financing, has secured Rs 50 crore (approximately $6 million) in debt funding from AK Capital Finance. This marks Auxilo’s first fundraising round of 2024.
Details of the Debt Offering:
The company’s board of directors has approved the allotment of 5,000 non-convertible debentures (NCDs), each valued at Rs 1 lakh (Rs 100,000). This brings the total consideration for this debt issuance to Rs 50 crore. Additionally, the offer includes a green shoe option allowing for an additional subscription of Rs 25 crore, potentially raising the total funding to Rs 75 crore.
Company Background and Services:
Established in 2017, Auxilo offers student loans for both domestic and international education pursuits. They also cater to educational institutions by providing loans for infrastructure and working capital needs.
Since its inception, the company has raised over $100 million through various equity and debt financing rounds. They compete in a well-funded market, facing competition from established players like Grayquest, Avanse Financial, Financepeer, Propelld, Leap Finance, and Eduvanz.
Recent Funding and Shareholding:
In July 2023, Auxilo secured Rs 470 crore in a funding round led by Tata Capital. Based on reports from startup intelligence platform TheKredible, this funding valued the company at around $250 million post-money. Following this round, Tata Capital holds a 10.58% stake in Auxilo, while ICICI Bank holds a 9.34% stake.
Financial Performance:
Auxilo’s revenue from operations witnessed a twofold increase in FY23, reaching Rs 178 crore compared to Rs 87 crore in FY22. It’s important to note that this revenue figure includes net gain on the fair value of assets. Auxilo primarily generates income through processing fees, interest earned on loan disbursements, and commissions.