Varthana Finance acquires ISFC's affordable school loan portfolio for Rs 126 Cr
Bob Pattillo, Founder of Gray Matters Capital, established ISFC in 2009 fill the gap for specialised financing for affordable private schools in India.
Non-banking finance company (NBFC) Finance has acquired the school loan portfolio of Indian School Finance Company (ISFC) for Rs 126 crore. With the acquisition, the NBFC will oversee term loans of 10,000 schools across 14 states.
The sale was facilitated by Bob Pattillo, Founder of Gray Matters Capital as well as Founding Investor at ISFC.
"This sale signifies more than a transaction; it's a demonstration not only how capital can be transformative when aligned with a market need, driven individuals, and a clear vision but also when to pass on the torch to others who are best suited to carry the mission forward," Pattillo said.
He established ISFC in 2009 to fill the gap for specialised financing for affordable private schools in India. ISFC provides term loans to affordable private schools, vocational colleges and institutes, coaching centres, independent teachers, and more.
Pattillo has also influenced the establishment of school finance banks globally, the company said in a statement.
"It fills me with great pride that through ISFC, we have supported 5 million children from low-income families over 15 years, sparking a movement that has led mainstream commercial lenders to recognize the value of this segment," Pattillo said.
Founded in 2013, Varthana is a school funding provider in India, offering loans to address the development needs of affordable private schools.
It had secured $14 million from Blue Earth Capital in January to extend its financial assistance to a larger network of affordable private schools across the country. The company operates in 16 states and union territories, with 40 branches and 150 spokes.
"Taking the ISFC portfolio under Varthana's wing is another significant step in our journey to ensure that India’s schools are well supported to deliver quality education to the country’s 350 million young people. It is particularly special that our relationship with ISFC has come full circle, and we are honoured to take that legacy forward," Steve Hardgrave, CEO and Co-founder of Varthana, said.
Edited by Kanishk Singh