Debt financing
Education loans player Varthana raises Rs.75-Cr from OfBusiness, Oxyzo
Bengaluru-based education-focussed non-banking finance company (NBFC) Varthana has raised INR 75 Cr (about USD 8.7 million) debt funding co-led by B2B ecommerce startup OfBusiness and its financial services arm Oxyzo by way of issue of non-convertible debentures (NCDs).OfBusiness and Oxyzo each invested INR 27.50 Cr in the company, while Ambium Finserve and IKF Finance infused the remaining INR 20 Cr.The new funds will be used to grow its loan book by providing financing solutions for low-budget private schools and students seeking to pursue higher education in India.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 and has presence in 40 cities across 15 states.
Between May 2013 and Dec 2024, Varthana had attracted about USD 145 M from Accion International, Elevar Equity, LGT Venture Philanthropy, Omidyar Network, Kaizen PE, Michael & Susan Dell Foundation, ChrysCapital, Blue Earth Capital, BlueOrchard and Triodos.For FY24, Varthana had reported about INR 278 Cr in Operating Income and about INR 31 Cr in PAT.
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