Varthana Bags INR 120 Cr To Expand Lending Portfolio

Education-focussed non-banking financial company (NBFC) Varthana has raised INR 120 Cr (around $15 Mn) debt from BlueOrchard Microfinance Fund.

In a statement, the company said that the funding was raised through an external commercial borrowing framework.

The fresh proceeds will be used to expand its lending portfolio to provide private schools and vocational students in Tier II & III cities with financial support for infrastructure enhancement and skill-based learning initiatives, respectively.

Founded in 2013 by Brajesh Mishra and Steve Hardgrave, Varthana offers low-cost, collateral-free loans with customised EMI options to private schools and students. 

Under its student loan offering, it provides loans of up to 5 Lakh for degree and PG courses, two-year pre-university college degrees, certification courses and skill enhancement courses. 

With a presence in 16 states and union territories and 40 branches, Varthana claims to have financed over 11,000 private schools and provided over 16,500 loans till date. 

“We are thrilled to receive this second round of funding from BlueOrchard Microfinance Fund, which strengthens our commitment to transforming education in underserved communities”, said Hardgrave.

The company has raised funding from multiple investors in different rounds this year. In  May, it raised INR 27 Cr (around $3.2 Mn) from Netherlands-based impact investment fund Triodos Investment Management via non-convertible debentures.

Prior to that, it raised a debt funding of $10 Mn (about INR 83.4 Cr) from impact investor BlueOrchard Finance. In January, the NBFC secured $14 Mn (about INR 116 Cr) from Blue Earth Capital. 

Overall, Varthana has raised a capital of over $135 Mn till date.

In the student loan category, it competes with the likes of Leap Finance and Eduvanz. In the educational infrastructure loan space, it competes with players such as Auxilo, Ugro Capital, EnableCap, IFSC, among others.