Varthana Finance Expands School Funding Reach with Acquisition of ISFC’s Loan Portfolio

Varthana Finances - Education Loans
Preeti Bali / 2:45 pm / March 17, 2024

Indian education lender Varthana Finance has taken a major step in expanding its reach by acquiring the school loan portfolio of the Indian School Finance Company (ISFC) for ₹126 crore. This acquisition brings over 10,000 schools across 14 Indian states under Varthana’s umbrella, significantly increasing the number of institutions it supports.

Passing the Torch: ISFC’s Legacy in School Finance

The sale, facilitated by Bob Pattillo, founder of ISFC and Gray Matters Capital, marks a significant moment for India’s education financing landscape. “This sale represents more than just a financial transaction,” Pattillo said. “It showcases the transformative power of well-aligned capital and dedicated individuals with a clear vision. It’s also a testament to knowing when to pass the torch to those best equipped to carry the mission forward.”

ISFC, established by Pattillo in 2009, has played a crucial role in bridging the gap for specialized financing for affordable private schools in India. The company has provided term loans to various institutions, including vocational colleges, coaching centres, and independent teachers, enabling them to cater to low-income families. Pattillo’s influence extends beyond India, having played a key role in establishing school finance banks globally.

Varthana Poised to Build on ISFC’s Foundation

Founded in 2013, Varthana shares ISFC’s mission of supporting affordable private schools in India. The company offers loans specifically designed to address the development needs of these institutions. With a recent $14 million investment from Blue Earth Capital, Varthana is well-positioned to expand its financial support. Varthana currently operates in 16 states and union territories with a robust network of branches and spokes.

“This acquisition is a significant step forward in our commitment to ensuring Indian schools have the resources they need to deliver quality education to the country’s young population,” said Steve Hardgrave, CEO and Co-founder of Varthana. “We are honored to take on ISFC’s legacy and build upon the strong foundation they have laid.”

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