New Delhi, Jan. 5 -- Private equity firms Warburg Pincus and Kedaara Capital as well as Abu Dhabi sovereign wealth fund Mubadala have doubled down on their investment in Indian non-bank lender Avanse Financial Services Ltd.
Avanse Financial said in a press release it raised a total of Rs 1,200 crore ($133 million) from existing shareholders Warburg Pincus, Kedaara and Mubadala via a rights issue.
The company plans to utilise the capital to scale education loan disbursements, strengthen education infrastructure by launching new offerings like flexi-term loans, and receivable financing term loans, strengthen digital platforms and analytics, deepen institutional partnerships across universities, colleges, and education counsellors, and reinforce capital adequacy and balance sheet strength.
The company had proposed to raise Rs 1,374 crore through a rights issue to its shareholders, according to a regulatory disclosure. Its other shareholders include International Finance Corporation (IFC) and a private equity fund managed by Avendus but they did not participate in the rights issue.
Background, financials
Avanse Financial was previously owned by Dewan Housing Finance. IFC acquired a 20% stake in the company in 2013. The company was renamed as Avanse a year later. Warburg acquired a near 80% stake in the company after Dewan Housing's exit in 2019. Kedaara entered the non-bank lender's cap table in 2023, whereas Mubadala and Avendus invested in the following year.
Currently, Warburg holds a 59.3% stake in Avanse while other shareholders hold the remaining 40.7% stake.
The company's net profit rose to Rs 502 crore in the financial year ended March 2025 from Rs 342 crore the year before, aided by growth in assets under management.
The company's loan book expanded to Rs 18,985 crore as on March 31, 2025, from Rs 13,303 crore at the end of FY24, according to its annual report. Avanse is the second-largest education financing NBFC in India, trailing Credila.
Published by HT Digital Content Services with permission from VC Circle.