Avanse Financial Services Secures Rs 1,000 Crore Funding Led by Mubadala Investment

• ByStartupStory     |    March 26, 2024

Avanse Financial Services Ltd, a prominent education-focused non-banking financial company based in Mumbai, has successfully raised Rs 1,000 crore in a recent funding round. The funding was led by Abu Dhabi-based Mubadala Investment Company and Avendus PE Investment Advisors Private Limited through its fund Avendus Future Leaders Fund II.

The capital infusion aims to bolster Avanse Financial Services’ position in the rapidly evolving education financing sector, with a strategic focus on enhancing customer experiences and achieving sustained growth.

Amit Gainda, Managing Director and CEO of Avanse Financial Services, expressed his enthusiasm about the recent investment, stating, “We are delighted to welcome our new strategic investors, who share a common vision of strengthening the education financing segment in India. Along with them, we also appreciate the constant support of our existing shareholders, Warburg Pincus, Kedaara Capital, and the International Finance Corporation.”

Established in 2013, Avanse Financial Services Limited operates as a non-banking financial company with a mission to provide affordable education financing solutions for Indian students. Its comprehensive range of student loans covers various aspects of the education lifecycle, including financing for higher education abroad, in India, and skill enhancement loans.

“They not only have recognised the profound impact of making education financing accessible and affordable but also believe in our brand ethos and our core belief that no deserving student should miss an opportunity to access quality education due to the lack of financing, irrespective of their social strata or co-borrower’s financial background,” Gainda added.

As of December 2023, Avanse Financial Services’ assets under management (AUM) stand at an impressive Rs 12,147 crore, indicating its significant presence in the education finance sector in India.

Narendra Ostawal, Managing Director and Head of India at Warburg Pincus, commended Avanse’s dedication to democratizing education in India, stating, “Avanse, driven by its vision to democratise education in India, has transformed into one of India’s premier education finance companies. We are thrilled to collaborate with Mubadala Investment Company as Avanse continues to advance its long-term objectives.”

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