Funding Alert

Education-Focused NBFC Varthana Raises $15 Million from BlueOrchard to Boost Lending Portfolio

• ByStartupStory     |    December 9, 2024

Education-focused non-banking finance company (NBFC) Varthana has secured $15 million (~Rs 120 crore) from the BlueOrchard Microfinance Fund, managed by impact investor BlueOrchard. This is the second capital infusion by BlueOrchard into Varthana this year, following a $10 million investment in April. The funds were raised under the external commercial borrowings framework and will be utilized to bolster Varthana’s lending portfolio.

The funding will support Varthana’s mission of providing financial aid to private schools and vocational students in Tier II and Tier III cities, enabling infrastructure development and skill-based learning programs. Highlighting the importance of this collaboration, Yan Kit Lee, Head of Originations, Asia, at BlueOrchard Investments (Singapore) Pte Ltd, stated:
“This facility represents BlueOrchard and Varthana’s mutual commitment and recognition of inclusive education’s crucial role in achieving sustainable development, and uplifting the future generations of India.”

Varthana has carved a niche in financing affordable private schools and higher education students in India. With a presence across 16 states and union territories and operating through 40 branches, the NBFC claims to have financed more than 11,000 private schools and facilitated over 16,500 loans for school expansion and renovation.

Sharing his thoughts on the funding, Steve Hardgrave, CEO of Varthana, said:
“These funds will allow us to reach more schools and families, enabling them to access the resources they need to create impactful learning environments.”

The funds will cater to a variety of needs, including furnishing campuses, equipping laboratories, installing CCTV cameras, upgrading to smart classrooms, and acquiring vehicles. Additionally, Varthana offers student loans to help candidates cover tuition fees and expenses for degree and certification courses.

Earlier this year, Varthana acquired the school loan portfolio of Indian School Finance Company, another education-focused lender, for Rs 126 crore in March. In January, the NBFC raised $14 million from Blue Earth Capital to extend its financial support to a broader network of affordable private schools. Varthana has also received funding from reputed investors, including Omidyar Network India and ChrysCapital.

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