Avanse Financial secures ₹1,000 cr led by Mubadala
Education-focussed nonbanking financial company, Avanse Financial Services, has secured ₹1,000 crore in primary capital. The round was led by Abu Dhabi’s Mubadala Investment Co with participation from Avendus PE Investment Advisors, via its Avendus Future Leaders Fund II.
“The fund infusion will enable Avanse to strengthen its position in the evolving education financing segment, focussing on creating unique customer experiences and achieving sustained profitable growth,” the Warburg Pincus-backed company said in a statement on Tuesday.
Avanse Financial Services offers loans to students pursuing higher education both in India and overseas. Additionally it offers financial support to institutions in India for expansion as well as for operational funding requirement.
As of December 2023, Avanse Financial Services assets under management was at ₹12,147 crore.
“This growth capital will enable us to strengthen our brand proposition, integrate digital solutions, and innovate to build more depth into our product range, as we work towards delivering greater stakeholder value,” Amit Gainda, managing director and chief executive officer at Avanse Financial, said.
“The influx of capital will assist us in fulfilling a larger number of academic aspira
The firm offers loans to students pursuing higher studies in India and abroad; also funds educational institutions
tions. Our customer-centric and result-oriented teams are equally passionate about empowering the students for upward mobility,” he added.
Nomura Financial Advisory and Securities (India) Pvt Ltd was the financial advisor to the company, while AZB & Partners represented Avanse Financial and Warburg Pincus as legal counsel.
Khaitan & Co. and Latham & Watkins LLP acted as legal counsel to Mubadala. JSA represented Avendus Future Leaders Fund II, the company said.
This investment by Mubadala is part of its efforts to actively diversify its portfolio in Asia. It acquired an undisclosed stake in Manipal Health Enterprises earlier this year and has plans to significantly increase its investment in Asia by 2030, it said in an interview to Bloomberg. Last year, Mubadala, along with Canadian pension fund British Columbia Investment Management Corp, participated as anchor investors in Cube Highways Trust.