Varthana, a Bangalore-based non-banking financial company (NBFC) pioneer in the affordable education loan sector, has raised $7 million from MicroVest, a global investment firm based out of the United States. This investment will enable Varthana’s vision of supporting and transforming affordable education in rural India and providing loans to affordable private schools on a pan-India basis. The funds will lend greater heft to Varthana’s aim of supporting and transforming affordable education in rural India and providing loans to affordable private schools.
Established in 2013, Varthana has a presence in 15 states through 40 branches. Varthana aims to transform education in India by catering to the needs of affordable private schools through financial assistance and academic support. It operates in the deeper geographies of India and works among EWS (economically weaker sections), low, and middle-income groups.
“After two years of battling COVID-19, schools have shown positive signs of growth and sustenance. Our aim is to serve more than 10,000 schools by the end of this financial year,” said Varthana co-founder and chief executive officer, Steve Hardgrave.
In 2016, the company raised Rs 93 crore in a Series B round led by Kaizen Private Equity and Zephyr Peacock India. Its existing investors, Elevar Equity, LGT Venture Philanthropy, and Omidyar Network had also participated. In 2017, it raised $3 million from Michael and Susan Dell Foundation.
“MicroVest has been our long-term investment partner working towards the cause of providing access to quality education in India. The low-budget schools in which we invest are counting on inclusive financial services to get back to business following the unprecedented challenges faced during the pandemic. With the support of MicroVest, Varthana is now in a stronger position to play a constructive role in aiding these affordable schools,” said Steve Hardgrave, CEO and co-founder, Varthana.
MicroVest is proud to support Varthana on its mission to help low-income students and their families in India access quality education. Varthana is a testament to the impact that every dynamic financial institution can make when provided the opportunity to scale its innovations and approaches. We are committed to supporting Responsible Financial Institutions like Varthana. During this challenging post-Covid environment, their efforts are more important than ever,” said MicroVest CEO, Joshua Moraczewski.