Varthana raised $2.5 Mn in debt funding from Symbiotics Investments via education-focused social bonds
The startup said it will use the fresh funds to make private schools in rural and suburban areas affordable by financing equipment purchases and refurbishment of facilities
Varthana is a non-banking financial services company (NBFC) that offers education loans to schools and students
Fintech platform Varthana has raised a debt funding of $2.5 Mn from Symbiotics Investments via education-focused social bonds.
The startup said it will use the fresh funds to make private schools in rural and suburban areas affordable by financing equipment purchases and construction and refurbishment of facilities. Besides, Varthana will also provide loans to students for vocational training, it said in a statement.
Varthana, founded by Brajesh Mishra and Steve Hardgrave in 2013, is a non-banking financial services company (NBFC) that offers education loans to schools and students.
Commenting on the funding, Varthana CEO and cofounder Hardgrave said, “We are thankful to Symbiotics for their support, which enhances Varthana’s ability to play a constructive role in helping with the post-COVID-19 recovery and ongoing improvement of schools throughout the country.”
This is the second fundraiser by Varthana this year. In January, it bagged a debt funding of $7 Mn from US-based global investment firm MicroVest. Back then, it said that the funding would be used to scale up credit facilities for low-budget private schools affected by pandemic-induced disruptions.
Since its inception, Varthana has secured a total of $97.1 Mn in funding.
Varthana claims that by providing timely loans and support in alignment with specific needs of affordable private schools, it ensures that low-budget private schools can secure valuable resources without having to go through a long and difficult process.
In the low budget education support sector, Varthana competes with EduFund. In May, EduFund raised $3.5 Mn in a round led by MassMutual Ventures to accelerate growth, create new solutions and invest in technology.
According to the Reserve Bank of India (RBI), the education loans market is dominated majorly by the public sector banks (90%). Private sector banks and regional rural banks (RRBs) account for around 7% and 3% of total education loan outstanding, respectively.
