Avanse, an education-based NBFC, said it will use the funds to strengthen its position in the education financing category through continuous profitable expansion, focusing on improving the customer experience. The funding will assist the company in developing its brand, implementing digital solutions, and expanding its product offerings.
Avanse Financial Services Ltd., supported by Warburg Pincus, has received ₹1,000 crore in equity from Abu Dhabi’s Mubadala Investment Co. and Avendus PE Investment Advisors through their fund, Avendus Future Leaders Fund II.
The firm stated in a statement on Tuesday that “by focusing on creating unique customer experiences and achieving sustained profitable growth, the fund infusion will enable Avanse to strengthen its position in the rapidly evolving education financing segment.”
Avanse Financial Services, an NBFC focusing on education, provides loans to Indian students pursuing higher education both locally and globally. It also provides financial assistance to educational institutions in India for their expansion and operating funding needs.
As of December 2023, the company’s assets under management (AUM) were ₹12,147 crore.
“The expansion capital will enable us to improve our brand proposition, integrate digital solutions, and innovate to develop more depth into our product range as we move towards generating greater shareholder value,” said Amit Gainda, managing director and CEO of Avanse Financial Services.”
“The influx of finance will help us achieve a greater variety of academic goals. Gainda continued, “Our customer-centric and result-oriented teams are equally passionate about empowering students to achieve upward mobility.”
The company’s financial advisor was Nomura Financial Advisory and Securities (India) Pvt. Ltd., while Avanse Financial and Warburg Pincus were represented as legal counsel by AZB & Partners.
Mubadala’s legal counsels were Khaitan & Co. and Latham & Watkins LLP, while JSA represented Avendus Future Leaders Fund II, according to the business.
Mubadala is actively working to diversify its portfolio within Asia in addition to this transaction. It acquired an undisclosed piece of Manipal Health Enterprises earlier this year and intends to dramatically raise its investment in Asia by 2030, according to an interview with Bloomberg.
An infrastructure investment trust (InvIT) in India called Cube Highways Trust had Mubadala and the Canadian pension fund British Columbia Investment Management Corp. as anchor investors last year. Working with BlackRock Real Assets, the Abu Dhabi fund has also announced a $525 million investment in Tata Power Renewables for May 2023.
