Avanse Financial Services raises ₹1,200 crore through rights issue

The capital raise reflects strong shareholder confidence in Avanse's strategy, governance, long-term growth potential, while reinforcing its disciplined approach to building a diversified funding base

Avanse Financial Services, an education-focused non-banking financial company (NBFC), raised Rs 1,200 crore through a rights issue from its existing shareholders, including Warburg Pincus, Kedaara Capital and Alpha Investment Company, an affiliate of Mubadala Investment Company, the company said in a press release. The capital raise reflects strong shareholder confidence in Avanse’s strategy, governance and long-term growth potential, while reinforcing its disciplined approach to building a diversified funding base, the company said.

 

Amit Gainda, managing director and chief executive officer, Avanse Financial Services, said, “The successful completion of this rights issue reflects the strong confidence our shareholders have in Avanse’s strategy, governance and long-term growth potential. This capital will enable us to scale responsibly, reach more customers, identify white spaces, drive product innovation and continue building an inclusive and robust financing ecosystem.”

 

 

The fresh capital will be utilised to scale education loan disbursements across a wider range of students, courses and geographies, strengthen education infrastructure through product innovation, and launch new solutions such as flexi-term loans and receivable financing term loans. It will also support digital platform enhancement, deeper institutional partnerships, identification of new growth opportunities, and further strengthening of capital adequacy and balance sheet resilience. The funding positions Avanse to continue enabling academic aspirations through responsible, technology-driven financing.