Varthana, a pioneering Non-Banking Finance Company (NBFC) committed to enhancing affordable private education in India, has successfully raised $15 million (₹120 crores) from the BlueOrchard Microfinance Fund, managed by BlueOrchard, a global impact investor. The funds, secured through the External Commercial Borrowings (ECB) framework, will empower Varthana to advance its mission of providing accessible and quality education to underserved communities.
The funding will be strategically allocated to expand Varthana’s lending portfolio, supporting affordable private schools and vocational students in Tier 2 and Tier 3 cities. This includes financial assistance for infrastructure upgrades and skill-based learning initiatives, enabling schools to enhance facilities and improve teaching standards.
Varthana has already made a significant impact by financing over 11,000 affordable private schools and facilitating more than 16,500 loans for school expansion and renovation. Operating across 16 states/union territories with 40 branches, the company continues to drive measurable improvements in student success, particularly in Tier 3 and Tier 4 cities.
Commenting on the significance of this funding, Steve Hardgrave, the CEO of Varthana, said: “We are thrilled to receive this second round of funding from BlueOrchard Microfinance Fund, which strengthens our commitment to transforming education in underserved communities. These funds will allow us to reach more schools and families, enabling them to access the resources they need to create impactful learning environments. We are driving meaningful change and empowering the next generation with better opportunities to learn, grow, and thrive.”
Yan Kit Lee, Head of Originations, Asia, at BlueOrchard Investments (Singapore) Pte Ltd, stated: “This facility represents BlueOrchard and Varthana’s mutual commitment and recognition of inclusive education’s crucial role in achieving sustainable development, and uplifting the future generations of India. We are excited to journey alongside Varthana as they continue to transform the affordable education sector at scale.”
This collaboration underscores the critical role of private sector partnerships in bridging the education gap in India, fostering a brighter future for millions of students.
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