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Bengaluru-based non-banking finance company (NBFC) Varthana has raised $14 million in follow-on investment from the Blue Earth Capital platform, BlueEarth.
The NBFC provides loans to private schools and students to enable them to unlock their full potential. The round saw participation investment from BlueEarth-managed funds and others.
The funds will be used to expand its financial support to a wider network of affordable private schools across the country, said the company. As of today, it has established a presence in 16 States/Union Territories and 40 branches, along with extending its services to Tier III and Tier IV cities.
“We have consistently worked to bridge the access to quality education for low- and middle-income populations through financial support to budget private schools of India. With this investment, we aim to aspire more young minds in India for a better tomorrow,” said Steve Hardgrave, the CEO of Varthana.
The rise of affordable private schools in India can be attributed to sustainable, low-cost model, emphasising efficiency and quality education. However, despite the positive impact, these schools often encounter financial challenges that affect their growth and sustainability.
Over the past decade, the NBFC claims to have financed more than 9,500 affordable private schools and facilitating over 15,000 loans for school expansion and renovation.
Amy Wang, Head of Private Credit at Blue Earth Capital, stated: “We are excited to continue supporting the company. Today’s follow-on investment will help the company to expand its support to a wider network of affordable private schools as it resumed growth trajectory post Covid-19 pandemic. We believe this will have a tremendous impact on broadening the access to quality education in low-income communities in India.”
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