Avanse Financial has set its sights on expanding its reach and services to Indian students seeking higher education at international locations. The $110 million in growth capital from Kedaara Capital will allow the company to strengthen its brand proposition and integrate digital solutions to better serve its customers.
Avanse Financial, an education-focused non-banking financial company (NBFC), announced on Thursday that it has raised $110 million from private equity firm Kedaara Capital to drive its future growth. Global private equity firm Warburg Pincus will remain the majority shareholder in the NBFC. The funds will be deployed to expand Avanse’s presence and reach a larger number of Indian students.
“We are thrilled to have Kedaara Capital join us as a partner in this exciting phase of growth,” said Amit Gainda, Managing Director and CEO of Avanse Financial Services. “As the world recovers post-pandemic, we have seen a significant resurgence of students seeking higher education at international locations. The growth capital will enable us to strengthen our brand proposition, integrate digital solutions, and innovate to build more depth into our product range as we work towards delivering greater stakeholder value.”
Founded in 2013, Avanse Financial provides education financing for Indian students. Their financial solutions include student loans for higher education, student loan refinancing, skill enhancement loans, executive education loans, and institution loans. Avanse claims to have served the needs of over three lakh academic aspirants across more than 3,000 institutes and 25,000 courses in over 50 countries. It has provided growth and working capital to more than 1,000 educational institutes, catering to over five lakh to six lakh students.
According to the company, its assets under management stand at $1.08 billion as of December 2022. During the first nine months of the financial year 2023, Avanse disbursed loans amounting to $660 million.
“We look forward to using our operational expertise and experience in the financial services space to help them realize their long-term vision,” said Sunish Sharma, Managing Partner and Co-CEO of Kedaara Capital. Kedaara currently manages over $3.6 billion through investments in several market-leading businesses across a variety of sectors. Avendus Capital acted as the exclusive financial advisor for the transaction.
Avanse Financial : Expanding Reach and Services
Avanse Financial has set its sights will allow the company to strengthen its brand proposition and integrate digital solutions to better serve its customers.
“We are excited to expand our presence and reach a larger number of Indian students,” said Gainda. “The funds will allow us to innovate and build more depth into our product range, giving us the ability to deliver greater value to our stakeholders.”
A Strong Partner
Kedaara Capital, which manages over $3.6 billion in investments across various sectors, sees Avanse Financial as a strong partner in the education financing space. “We are impressed with Avanse’s operational expertise and experience in the financial services space,” said Sharma. “We look forward to helping them realize their long-term vision.”
A Resurgence in International Education
The world is recovering from the pandemic, and Avanse Financial has seen a significant resurgence of students seeking higher education at international locations. This trend, coupled with the company’s growth capital, positions Avanse Financial to be a leading player in the education financing space.
“The pandemic has highlighted the importance of education and the need for financial solutions to make it accessible,” said Gainda. “We are well-positioned to meet this demand and help more students achieve their academic aspirations.”
Avanse Financial Outlook: The Future of Education Financing
The future of education financing is about providing more flexible and tailored solutions for students to access higher education. Avanse Financial is at the forefront of this movement with its diverse range of financial solutions.
One of the key trends in education financing is the increasing demand for student loan refinancing. Avanse Financial offers this option, allowing students to consolidate their existing loans and potentially lower their interest rates. This makes it more manageable for students to repay their loans and frees up more funds for them to invest in their education.
Another trend is the growing importance of skills enhancement and professional development. Avanse Financial recognizes this and offers skill enhancement loans and executive education loans to help students pursue these opportunities.
The company also provides institution loans, which enables educational institutes to access the funding they need to improve their facilities and provide better education to their students.
Avanse Financial’s emphasis on digital solutions has also been a key factor in the company’s success. The company’s digital platforms enable students to apply for loans and track their application status online, making the process more efficient and convenient.
Overall, the future of education financing is about providing more options and flexibility for students to access higher education, and Avanse Financial is well-positioned to meet this demand with its diversified range of financial solutions, digital platforms and a strong commitment to delivering greater stakeholder value.