New Delhi, July 9 -- Varthana Finance, a ChrysCapital-backed non-banking financial company (NBFC) focused on education, has secured debt funding from BlueEarth Capital, Franklin Templeton Alternative Investments, and ResponsAbility, the company said on Wednesday.
The Bengaluru-based firm, which is also backed by Kaizen Private Equity, provides financing and academic support to private schools. The company said it has raised Rs 159 crore ($18.5 million) in debt funding through external commercial borrowings (ECBs) and non-convertible debentures (NCDs).
Of the total amount, Rs 69 crore came via ECB from Swiss impact investor BlueEarth Capital, Rs 65 crore through NCDs from Switzerland-focused impact investor ResponsAbility, and Rs 25 crore from Franklin Templeton AIF via NCDs.
BlueEarth had previously invested in Varthana in 2019.
The company said the funds will be used to scale its network of affordable private schools across India and to improve access to solar and renewable energy solutions in these institutions.
"The investment from Blue Earth Capital and Franklin Templeton AIF will strengthen our network of affordable private schools, while the investment from ResponsAbility will support the integration of clean energy solutions by fostering sustainability and long-term resilience in school operations," said Steve Hardgrave, CEO of Varthana.
Varthana, founded in 2013, operates in 16 states and Union Territories through 40 branches and 150 spokes, primarily serving tier II and III cities. The company claims to have supported over 12,000 schools, disbursing more than 19,000 loans for school expansion and renovation.
In April, Hardgrave told VCCircle that the company plans to raise up to Rs 100 crore in equity in the current financial year to build its loan portfolio and expand its student and school lending businesses. The funding is expected in the third quarter, he added.
For FY25, Varthana's assets under management (AUM) rose 48% year-on-year to Rs 1,897 crore, with the student loan book surging almost 83% to Rs 291 crore. However, net profit declined to Rs 24 crore from Rs 31 crore the previous year, mainly due to a high base effect.
Published by HT Digital Content Services with permission from VC Circle.