Varthana Secures $10 Million Funding to Expand Educational Financing in India

Varthana Bags Funding
Preeti Bali / 11:40 am / April 16, 2024

Varthana, a non-banking financial company (NBFC) specializing in education, announced securing $10 million in debt financing from BlueOrchard Finance, an impact investor. This funding will empower Varthana to broaden its reach and provide accessible financial solutions to a wider network of affordable private schools across India.

Founded in 2013 with a mission to bridge the educational equity gap, Varthana offers loans to both low-budget private schools and students. By providing crucial financial resources, Varthana aims to empower these schools and students, ultimately improving the quality of education for underprivileged communities.

Expanding Educational Opportunities for All

“This funding strengthens Varthana’s position to expand its support network,” stated Varthana CEO Steve Hardgrave. “We are committed to accelerating efforts towards ensuring quality education for every child, irrespective of their socioeconomic background.”

Varthana boasts an impressive track record, having financed over 11,000 affordable private schools and facilitating more than 16,500 loans for school expansion and renovation. With a presence in 40 branches across 16 Indian states and union territories, Varthana is a significant player in the educational financing landscape.

Beyond Schools: Empowering Students

Varthana’s offerings extend beyond schools, providing loans to students pursuing higher education, technical training programs, and postgraduate studies. Their ambitious goal is to reach over 1 crore students across India by 2025.

Building on a Strong Foundation

This latest funding follows a series of successful fundraising rounds for Varthana. In January 2024, they secured $14 million, and in September 2023, they obtained $2.5 million through education-focused social bonds from Symbiotics Investments. Additionally, January 2023 saw a $7 million investment from MicroVest to bolster credit facilities for low-budget private schools.

In the student loan domain, Varthana faces competition from Leap Finance and Eduvanz. For educational infrastructure loans, they compete with players like Auxilo, Ugro Capital, EnableCap, and IFSC.

Varthana’s continued growth and strategic use of these funds position them as a key player in democratizing access to quality education in India.

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