Avanse Financial Services, India’s education-focused non-banking financial company (NBFC), today raises INR 390 crore from its existing shareholders, Warburg Pincus, a private equity firm, through its affiliate Olive Vine Investment and International Finance Corporation (IFC), an arm of World Bank via a rights issue. The contribution percentage of the amount is as per their existing shareholding pattern – 80 per cent and 20 per cent, respectively. With this investment, the net worth of the company stands at INR 1,450 crore.
“Being an education-focused organisation, we ensure that we eliminate the gap between a student’s academic aspiration and the finances involved so that they can walk on the path leading to upward mobility without depending on anyone,” said Amit Gainda, MD and CEO, Avanse Financial Services. “We will utilise this freshly infused capital to reach out to more education aspirants to fulfil their academic dreams. We will continue to focus on taking Avanse to its next phase of the sustained profitable growth journey. The current round of rights issue validates our strong commitment to democratising education and education financing in India.”
Narendra Ostawal, Managing Director, Warburg Pincus and Non-Executive Director, Avanse Board, said, “Avanse Financial Services has had a remarkable journey in its quest to strengthen the education ecosystem of the country. Since the beginning of our association, we have witnessed a compelling growth story, and we believe that the company is well-poised to build upon the leadership position it has carved out within the industry. The equity infusion by the existing investors will enable Avanse to further leverage its deep domain expertise in the education sector and make credit accessible and affordable for more students to achieve their academic ambitions. Warburg Pincus looks forward to strengthening this relationship and is all set to support the talented management team at Avanse in the next phase of the growth journey.”