Avanse Financial Services raises Rs 357 Crores via Securitization Transaction facilitated by Northern Arc Capital

Avanse Financial Services Ltd

Avanse Financial Services Ltd, education-focused non-banking financial company (NBFC), has raised Rs 357 Crores via securitization transaction from a renowned global financial institution.

This long-term funding is for a period of ~10 years. The transaction was facilitated by Northern Arc Capital. This fund will be utilized to strengthen and fulfil Avanse’s mission of making education financing seamless and affordable for every deserving Indian student.

Amit Gainda, CEO, Avanse Financial Services said, “This is a significant milestone as it is the first securitization transaction in the education loan space, invested by a global financial institution establishing this segment as an asset class at an international level. It has enabled us to boost our diversified long-term stable funding strategy. I believe this newly established relationship will grow multi-fold across different spectrums of financial services and will assist us in fulfilling students’ academic aspirations and strengthening the education infrastructure of the country.”

He further added, “Education is an essential aspect of the Indian culture, and thus, it is a non-discretionary spend sector backed by favourable demographics and heightened awareness. This makes education financing a sunshine segment and a multi-decade secular growth opportunity in India. This transaction demonstrates the investor community’s trust in Avanse Financial Services’ commitment towards democratizing education and education financing in India.

Bama Balakrishnan, COO, Northern Arc Capital said, “We are pleased to structure, facilitate and co-invest in this notable securitization transaction. Education financing is a bourgeoning segment in India, and we foresee several innovative models emerging in this space. Avanse has been an early mover, demonstrating consistent growth and making access to high-quality education a reality for thousands of students in India. At Northern Arc, we are committed to supporting businesses like Avanse that bring transformative impact and the latest transaction is a testament to that.”

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