Education-focused Non-Banking Financial Company (NBFC) Varthana has secured INR 159 crore (approximately $18.6 million) in debt funding to further its mission of expanding access to quality education across India. The latest round saw participation from notable global investors including BlueEarth Capital, Franklin Templeton Alternative Investments (Franklin Templeton AIF), and responsAbility.
Driving Financial Inclusion in Education
Founded in 2013 by Steve Hardgrave and Brajesh Mishra, Varthana aims to bridge the financing gap in India’s education sector. The company provides low-cost, collateral-free loans to private schools and students, with flexible and customized EMI repayment options. This makes quality education more accessible, particularly in underserved urban and semi-urban areas.
With this new infusion of capital, Varthana plans to expand its loan offerings and enhance infrastructure support for schools across the country. The focus is on helping educational institutions upgrade their facilities, implement sustainable practices, and adopt renewable energy solutions like solar power.
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Funding to Enable Sustainable and Energy-Efficient School Infrastructure
In a statement, Varthana emphasized its commitment to supporting schools in becoming environmentally sustainable. Part of the debt funding will be allocated to assist schools in building energy-efficient infrastructure, reducing their environmental footprint while also cutting long-term operating costs.
By enabling schools to integrate solar power systems, Varthana is also contributing to India’s broader clean energy goals. This move is expected to have a long-term impact, not only improving the quality of school infrastructure but also promoting green education environments.
Empowering Students With Affordable Education Loans
Apart from working with schools, Varthana also provides student loans of up to INR 5 lakh for a range of academic and professional programs. These include:
- Undergraduate and Postgraduate (PG) degree courses
- Two-year pre-university programs
- Vocational certification courses
- Skill development and enhancement programs
This holistic approach ensures that both institutions and individuals have access to the financial resources they need to succeed in today’s competitive education landscape.
Strong Backing from Global Impact Investors
The participation of impact investors like BlueEarth Capital, Franklin Templeton AIF, and responsAbility underscores growing international interest in India’s education and social impact sectors. These organizations are known for investing in initiatives that drive measurable, positive change in underserved communities.
With this strategic backing, Varthana is well-positioned to scale its reach and impact significantly in the coming years.
Conclusion: Financial Innovation for Educational Equity
Varthana’s INR 159 Cr debt raise is more than just a funding milestone—it is a step toward financial innovation in education. By enabling affordable access to quality education and sustainable infrastructure, Varthana is empowering India’s next generation of learners and educators.
As the demand for equitable and eco-friendly education grows, Varthana stands at the forefront of a movement that combines financial access, educational growth, and green innovation for a more inclusive future.
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