Varthana Finance Secures $10 Million to Enhance Education Quality Across India

• ByStartupStory     |    April 16, 2024

Varthana Finance, a leading non-banking finance company (NBFC) that specializes in the educational sector, has successfully raised $10 million in a funding round led by BlueOrchard Finance Ltd. This investment marks another significant milestone in Varthana’s mission to improve access to quality education in India.

Steve Hardgrave, CEO of Varthana Finance, expressed his enthusiasm about the new funding: “With this funding, Varthana is poised to expand its reach and support to a larger network of affordable private schools, thereby accelerating our efforts to ensure quality education for every child, regardless of socio-economic background.”

This latest injection of funds will help Varthana to enhance its support for private schools, which includes financing for infrastructure improvements such as furnishing campuses, equipping laboratories, implementing CCTV systems, upgrading to smart classrooms, and acquiring vehicles. Additionally, Varthana provides essential student loans that help cover tuition fees and other educational expenses for degree and certification courses.

Founded in Bengaluru, Varthana has established a significant presence in the Indian education finance sector. The company currently operates across 16 states and union territories with an extensive network of 40 branches and 150 spokes. To date, Varthana has financed over 11,000 private schools and facilitated more than 16,500 loans for school expansion and renovation.

In a strategic move to broaden its impact, Varthana Finance recently acquired the school loan portfolio of Indian School Finance Company for Rs 126 crore. Furthermore, in January 2024, the company secured an additional $14 million from Blue Earth Capital, aimed at further expanding its services to more affordable private schools throughout India.

Varthana has also received backing from notable investors such as Omidyar Network India and ChrysCapital, underscoring the confidence and commitment of financial backers to Varthana’s mission of transforming education in India.

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