ISFC, a non-bank lender focused on lending to educational institutions and entrepreneurs managing such institutions, has tied up equity and debt commitments worth $30 million from existing investor Gray Matters Capital and other partners such as non-banking financial companies (NBFCs), including Incred, U Gro Capital, and Profectus Capital.
“We believe this sector is undervalued and will go through significant evolution and expansion in the next few years,” said Erika Norwood, president and chief executive officer (CEO), Gray Matters Capital.
The new investment round and joint lending partnership will enable ISFC to expand its current partner network from 6,500 schools to 15,000. It also plans to introduce offerings focusing on student financing for K-12, coaching and skill development.
“Out of this $30 million, $8 million ($5 million equity, $3 million debt) is from Gray Matters, our existing investor. The remaining $ 22 million is from three NBFCs ( ₹50 crore each from Incred Finance, U Gro Capital and Profectus Capital) in the form of direct assignment to create liquidity and joint lending arrangement for disbursements for the remaining part of this financial year,” said Sandeep Wirkhare, managing director and CEO, ISFC.
The lender believes demand from education institutions will be better because of spending on infrastructure, digitisation, and teachers training, following the implementation of the New Education Policy, Wirkhare said.
