Varthana, a Bengaluru-based education-focused Non-Banking Finance Company (NBFC), has raised ₹159 crore in fresh debt investment from a mix of global impact investors. The funding round includes participation from BlueEarth Capital, ResponsAbility, and Franklin Templeton Alternative Investment Fund (AIF).
The investment was secured through a combination of External Commercial Borrowing (ECB) and Non-Convertible Debentures (NCD). Of the total amount, ₹69 crore came from BlueEarth Capital, ₹65 crore from ResponsAbility, and ₹25 crore from Franklin Templeton AIF.
The company plans to use these funds to strengthen its mission of improving access to affordable education in India. The focus will be on expanding the network of low-cost private schools and promoting the use of solar and renewable energy solutions within these institutions.
Founded in 2013 by Steve Hardgrave and Brajesh Mishra, Varthana provides loans tailored for the development of school infrastructure, teacher training, and student education needs. Its goal is to transform India’s affordable education landscape by supporting schools and students, particularly in underserved areas.
Varthana’s CEO, Steve Hardgrave, expressed enthusiasm over the partnership, stating that the collaboration with global investors is a strong step towards driving meaningful change in the education ecosystem.
To date, the company has supported over 12,000 affordable private schools and has issued over 19,000 school loans. With a presence in 16 Indian states and union territories and more than 40 branches, Varthana primarily serves schools in tier II and tier III cities.
Previously, Varthana had also raised $89.5 million in funding from Omidyar Network and other backers, further cementing its position as a key player in India’s educational finance sector.
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