NBFC Varthana bags $6M loan from WaterEquity for school sanitation projects

Varthana Finance, a non-bank lender focused on affordable education in India, has secured a $6 million loan from WaterEquity to expand access to water and sanitation infrastructure in low-cost private schools.

According to a statement, the firm said the funds will support the installation of clean drinking water systems, sanitation facilities, and hygiene infrastructure in underserved school communities, particularly in peri-urban and rural areas.

WaterEquity, a US-based asset manager that invests exclusively in water and sanitation projects, said the transaction marks its first global investment in the school finance segment. The firm has previously invested in microfinance institutions, housing finance companies, and small enterprises.

The asset manager said the partnership will allow it to scale water and sanitation access through Varthana’s network of schools. WaterEquity operates in 23 countries and has raised more than $470 million in committed capital since 2016.

“Access to safe water and sanitation is fundamental to creating a healthy and conducive learning environment,” said Steve Hardgrave, Wholetime Director and Executive Vice Chairman at Varthana. “By integrating WASH improvements into our school financing model, we are ensuring that quality education goes hand in hand with the well-being of students.”

Bengaluru-based Varthana, founded in 2013, operates across 16 states and union territories through 40 branches and 150 spokes. The company provides loans to affordable private schools and education loans to students pursuing higher and vocational education.

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“Children spend a significant portion of their day at school, and access to safe, dignified WASH facilities is essential to improving attendance and learning outcomes—particularly for girls,” said Amit Agarwal, Head of South and Central Asia for Financial Institutions at WaterEquity. “This transaction marks WaterEquity’s first global investment in the school finance sector, adding WASH lending for schools as a new product in our debt portfolio.”

The initiative is expected to contribute to improved health outcomes and school attendance, and support India’s progress toward the United Nations’ Sustainable Development Goal on water and sanitation, the companies said.

WaterEquity was founded by Gary White and American actor Matt Damon of Water.org and focuses on mobilising private capital for water and sanitation projects in emerging markets.