Source: Entrackr
Bengaluru, Varthana, a non-banking finance company (NBFC) that focuses on providing support to affordable private schools across India, has, however, secured ₹159 crore in debt funding. Funds have been raised via External Commercial Borrowing (ECB) and Non-Convertible Debentures (NCDs), two types of financing instruments commonly used by companies to procure loans.
The funding comes from three global impact investors:
BlueEarth Capital invested ₹69 crore
ResponsAbility contributed ₹65 crore
Franklin Templeton Alternative Investment Fund (AIF) invested ₹25 crore
These investors are supporting companies in creating a social impact, particularly in areas such as education, clean energy, and development.
Intent of Use of Funds
Varthana’s press release stated that Varthana would use the funding to increase its support for affordable private schools throughout India. The company will also help schools adopt solar power and other renewable energy solutions. This will enable the schools to use more sustainable solutions while lowering their long-run energy costs.
The funding will assist Varthana in improving school infrastructure and provide a better learning experience to children from underdeveloped and rural areas. Varthana’s vision is to reach more schools in Tier II and Tier III towns and cities where formal funding is not readily accessible.
About Varthana
Varthana was co-founded in 2013 by Steve Hardgrave and Brajesh Mishra, and different types of loans are offered by the organization:
School loans for construction, equipment purchase and expanding classrooms
Student loans for higher education, vocational training and skill-based courses
Teacher training loans that can help develop teacher quality and teacher leadership
Varthana is focused on affordable private schools that serve families from low-income backgrounds. These schools, despite being high quality, often struggle to access bank loans. Varthana seeks to fill this gap.
According to Varthana, its achievements to date include:
Supporting over 12,000 affordable private schools
Disbursing over 19,000 school loans
Establishing a presence in 16 states and union territories
Opening 40 branches to support its operations across India
Leadership Comment
Steve Hardgrave, CEO of Varthana, said:
“Varthana is pleased to partner with Blue Earth Capital, Franklin Templeton AIF, and ResponsAbility in our efforts to drive impactful change in the education sector and make quality education accessible to all across India”.
Funding Previous
Before this round, Varthana had raised approximately $89.5 million in capital from investors, including the Omidyar Network. The company is continuing to get funding from investors that want to make a social impact.
Using this package, Varthana aims to scale its footprint, give schools access to clean-energy, and help improve and expand education for underserved communities throughout India.
