Avanse Financial Services, an education-focused non-bank lender raised about Rs 390 crores from its existing shareholders, Warburg Pincus and International Finance Corporation (IFC).
The investment was done through a rights issue of shares in proportion to the shareholding. Private equity firm Warburg Pincus holds 80% in Avanse through affiliate Olive Vine Investment while IFC holds the balance 20%.
With this capital infusion, Avanse’s net worth rose to about ₹1,450 crore.
“We will utilise this freshly infused capital to reach out to more education aspirants to fulfil their academic dreams. We will continue to focus on taking Avanse to its next phase of the sustained profitable growth journey,” Avanse’s managing director Amit Gainda was quoted as saying in a statement issued by the company Wednesday.
Its assets under management stood at Rs 4,836 crore at the end of March, reflecting a 22% compounded growth over the last four years.
The equity raised would enable Avanse to strengthen its balance sheet and capital adequacy ratio.
He said that Warburg Pincus would look forward to supporting Avanse in its next phase of growth.
