Varthana Bags INR 120 Cr To Expand Lending Portfolio

SUMMARY

The education-focussed NBFC raised the funding from BlueOrchard Microfinance Fund through an external commercial borrowing framework

The capital will be used to provide schools and vocational students in Tier II & III cities with financial support for infrastructure enhancement and skill-based learning initiatives

Varthana offers low-cost, collateral-free loans with customised EMI options to private schools and students

Education-focussed non-banking financial company (NBFC) Varthana has raised INR 120 Cr (around $15 Mn) debt from BlueOrchard Microfinance Fund.

In a statement, the company said that the funding was raised through an external commercial borrowing framework.

The fresh proceeds will be used to expand its lending portfolio to provide private schools and vocational students in Tier II & III cities with financial support for infrastructure enhancement and skill-based learning initiatives, respectively.

Founded in 2013 by Brajesh Mishra and Steve Hardgrave, Varthana offers low-cost, collateral-free loans with customised EMI options to private schools and students. 

Under its student loan offering, it provides loans of up to 5 Lakh for degree and PG courses, two-year pre-university college degrees, certification courses and skill enhancement courses. 

With a presence in 16 states and union territories and 40 branches, Varthana claims to have financed over 11,000 private schools and has provided over 16,500 loans till date. 

“We are thrilled to receive this second round of funding from BlueOrchard Microfinance Fund, which strengthens our commitment to transforming education in underserved communities”, said Hardgrave.

(The story will be updated soon.)

Source: Inc42 Media


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