Avanse raises Rs 1,200 crore through rights issue

MUMBAI: Avanse Financial Services on Jan 5 in Mumbai said it raised around Rs 1,200 crore through a rights issue from existing shareholders to fund the next phase of growth by expanding education lending, strengthening products and improving balance sheet capacity.The education-focused NBFC said the capital was raised from Warburg Pincus through its affiliate Olive Vine Investment, Kedaara Capital Growth Fund III and Kedaara Pichola Holding, and Alpha Investment Company, an affiliate of Mubadala Investment Company. The fundraise adds to Avanse’s equity base at a time when demand for education loans, both domestic and overseas, continues to expand.The company said the proceeds would be used to scale education loan disbursements across more students, courses and countries, expand product offerings including flexi-term loans and receivable financing term loans, and seed new businesses in areas where financing gaps exist.

Part of the capital will also go towards strengthening digital platforms and analytics, deepening partnerships with universities, colleges and education counsellors, and shoring up capital adequacy to support balance sheet resilience.Amit Gainda, managing director and ceo, said the rights issue reflected shareholder confidence in the company’s strategy and governance. “This capital will enable us to scale responsibly, reach more customers, identify white spaces, drive product innovation and continue building an inclusive financing ecosystem,” he said.

Gainda said India’s education financing market was supported by favourable demographics and rising demand for higher education, alongside a growing need for structured financial support. He said the company was positioned to capture this opportunity through domain expertise, underwriting discipline and a technology-enabled operating model.