Avanse Financial Bags $98.3 Mn Funding From Kedaara Capital

Education-focused non-banking financial company (NBFC) Avanse Financial is going to raise $98.3 Mn (INR 800 Cr) from private equity firm Kedaara Capital to fund its growth.

Avanse will use the funds to expand its presence and offer more credit to Indian students, in turn, helping them fulfill their academic aspirations. It will also deploy funds for product development and integrate digital solutions, shared by the startup.

Avanse shared that post this deal, Warburg Pincus continues to be the majority shareholder in it. 

The development comes almost two years after Avanse secured $15 Mn funding from US-based financial institution World Business Capital Inc.

Founded in 2012, Avanse offers credit for post-graduate students and academic institutions. It claims to have an asset under management (AUM) at nearly INR 8,000 Cr as of December 2022 and also reported a 1.9x growth over the same period last fiscal year. 

Avanse shared that in the first nine months of FY2023, its loan disbursement stood at about INR 4,850 Cr, growing by nearly 2.5X in the same period last fiscal year.

“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,” said Amit Gainda, managing director & CEO, Avanse Financial.

The NBFC shared that it has offered services to more than 3 Lakh students across 3,000+ institutes in over 50 countries. At the same time, it claims to have offered growth and working capital to 1000+ educational institutes.

It offers credit to students, academic institutions and working professionals, which seek to upskill themselves. 

“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,” said Narendra Ostawal, managing director, Warburg Pincus and non-executive director of Avanse Board. 

In India, it competes with the likes of Eduvanz, Propelld and Leap Finance, among others.

According to an Inc42 report, the country’s fintech sector is projected to become a $1.3 Tn by 2025, growing at a CAGR of 31% during 2021-2025. 

Out of the burgeoning fintech space, lendingtech is a sub-sector that is anticipated to become a $616 Bn by 2025, growing at a CAGR of 47% by the forecasted period.