PE Fund Investments
Education-loans focused Avanse to raise Rs.1,100-Cr: report
Abu Dhabi’s Mubadala Investment Co, Kotak Pre-IPO Opportunities Fund and Avendus Future Leaders Fund are to invest INR 1,100 crore of primary capital into Warburg Pincus-backed Avanse Financial Services . The deal will value the non-banking financial company (NBFC) at INR 8,000 crore.Avanse claims to be the second largest domestic private sector NBFC in the education loan segment with assets under management (AUM) of INR 8,646 crore in FY23. The firm’s total disbursement in FY23 stood at INR 6,143 crore, a 2.1x increase over the previous financial year. Avanse claims to have financed 4 lakh students across 4,000+ institutes and 30,000+ courses in 50 countries, while providing growth and working capital to 2000 educational institutes.The company plans to go public this year to raise around INR 4,000 crore and has been in talks with investment bankers.Warburg Pincus acquired about 80% stake in Avanse in 2019. The rest of the stake in Avanse is held by Kedaara Capital (12.4%) and IFC.The company extends loans mainly for overseas studies in around 50 countries. Courses in the US account for 52.7% of such loans followed by Canada (18.6%), UK (17.5%), India (5.6%) and others (5.6%).
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