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Mubadala, Kotak, Avendus Inject INR 1,100 Cr into Avanse, Paving the Way for Expansion

Mubadala, Kotak, and Avendus commit INR 1,100 Cr to Avanse Financial Services, propelling the NBFC toward expansion and a potential public listing, marking a significant milestone for the education finance sector.

Sealing a Major Investment Deal

Abu Dhabi's Mubadala Investment Co, along with Kotak Pre-IPO Opportunities Fund and Avendus Future Leaders Fund, is set to infuse a significant primary capital totaling INR 1,100 Cr ($132.7 Mn) into Avanse Financial Services, as reported by ET. This move underscores a growing interest among alternative asset managers in the sector, positioning Avanse for substantial growth and expansion.

Avanse: Leading the Charge in Education Finance

As the second-largest domestic private sector non-banking financial company (NBFC) specializing in education loans, Avanse Financial Services has carved out a niche for itself since its inception in 2012. With a robust asset under management (AUM) of nearly INR 8,000 Cr as of December 2022, and a remarkable 1.9x growth over the previous fiscal year, Avanse has been instrumental in facilitating access to credit for post-graduate students and academic institutions alike.

Aiming for Public Debut

Buoyed by its impressive performance and ambitious growth plans, Avanse is now eyeing a public listing later this year, with aspirations to raise approximately INR 4,000 Cr. If successful, this milestone would mark the first-ever listing by an education-focused NBFC in India, signaling a significant milestone for the sector.

Driving Financial Inclusion and Empowerment

Avanse's commitment to fostering financial inclusion is evident in its extensive outreach, having financed over 4 lakh students across 4,000 institutes and 30,000 courses in 50 countries. By providing accessible and tailored financial solutions, Avanse is empowering students to pursue higher education aspirations globally.

Strengthening the Education Finance Landscape

With the backing of prominent investors and a clear focus on expanding its footprint, Avanse is poised to further consolidate its position in the education finance landscape. Its strategic partnerships and robust loan disbursement figures underscore its potential to drive meaningful impact in the sector.

Fueling the Growth Trajectory

As the demand for education financing continues to soar, Avanse's infusion of capital sets the stage for accelerated growth and innovation. With a keen eye on market trends and evolving consumer needs, Avanse is well-positioned to navigate the dynamic landscape of education finance and emerge as a key player in the sector.