Affordable education-focused NBFC Varthana Finance raises $10M
Founded in 2013, Varthana Finance is a Bengaluru-based NBFC that offers loans to address the development needs of affordable private schools.
Education-focused non-banking finance company (NBFC) Finance has raised $10 million from a fund managed by BlueOrchard Finance Ltd.
"With this funding, Varthana is poised to expand its reach and support to a larger network of affordable private schools, thereby accelerating our efforts to ensure quality education for every child, regardless of socio-economic background," Steve Hardgrave, CEO of Varthana Finance, said in a press release.
The NBFC provides loans to private schools for various expenditures, including furnishing campuses, equipping labs, implementing CCTV, upgrading to smart classrooms, and acquiring vehicles. It also provides student loans to candidates looking to cover tuition fees and other expenses for degree and certification courses.
The Bengaluru-based NBFC said it financed more than 11,000 private schools and facilitated over 16,500 loans for school expansion and renovation. The company operates in 16 states and union territories, with 40 branches and 150 spokes, it said.
Earlier in March, Varthana Finance had acquired the school loan portfolio of Indian School Finance Company, another education-focused lender, for Rs 126 crore.
In January 2024, it secured $14 million from Blue Earth Capital to extend its financial assistance to a larger network of affordable private schools across India. It has also raised funds from Omidyar Network India and ChrysCapital.
Edited by Affirunisa Kankudti