Varthana cofounder and CEO Steve Hardgrave told Inc42 that this is a follow-up investment by Blue Earth as the startup prepares for its Series D round
Blue Earth first backed the education-focussed NBFC in 2019 with an investment of $8 Mn
Varthana said the fresh funds will help it expand financial support to a wider network of affordable private schools in India
Education-focused fintech startup Varthana has raised $14 Mn (approximately INR 116 Cr) from its existing investor Blue Earth Capital. The investment comprises contributions from the funds managed by the impact investor and its partnerships.
Varthana cofounder and CEO Steve Hardgrave told Inc42 that this is a follow-up investment by Blue Earth as the startup prepares for its Series D round. Blue Earth backed the startup in 2019 with an investment of $8 Mn.
In a statement, Varthana said the fresh funds will help it expand financial support to a wider network of affordable private schools in India.
Founded in 2013 by Hardgrave and Brajesh Mishra, Varthana is an education-focussed non-banking finance company. It offers loans to students and low-budget private schools to support them with digital learning tools.
Commenting on the investment, Hardgrave said, “With this new investment, our commitment to transforming education in India will strengthen further…With this investment, we aim to aspire more young minds in India for a better tomorrow.”
Currently, Varthana claims to have a presence in 16 states through 40 branches. Besides school students, it also aims to support students attending college, technical training/ short-term courses, and postgraduate studies through its credit service.
The startup aims to offer loans to over 1 Cr students in the country by 2025.
Since its inception, Varthana claims to have catered to over 9,500 private schools and facilitated over 15,000 loans for development of schools and renovation across cities and towns of all sizes.
In September last year, the startup secured a debt funding of $2.5 Mn from Symbiotics Investments via education-focused social bonds. Back then, it said that the funds would be used to make private schools in rural and suburban areas affordable by offering credit for equipment purchases and construction and refurbishment of facilities.
It also secured $7 Mn funding in January 2023 from MicroVest to scale up credit facilities for low-budget private schools.
