Friday, 12 January 2024

Varthana Finance secures $ 14 million investment from Blue Earth Capital


 Bengaluru, India 12thJanuary, 2024

 Varthana Finance secures $ 14 million investment from Blue Earth Capital

 

Varthana, a leading Non-Banking Finance Company (NBFC) in the affordable education sector, has successfully secured a $ 14 million follow-on investment from the Blue Earth Capitalplatform (“BlueEarth”). Varthana provides loans to affordable private schools and students to enable them to unlock their full potential.

 

The investment comprises contributions from BlueEarth managed funds and partnerships. The additional capital will empower Varthana to expand its financial support to a wider network of affordable private schools nationwide, aligning with its overarching vision to enhance and transform the affordable education sector in India.

 

The rise of affordable private schools in India can be attributed to their sustainable, low-cost model, emphasizing efficiency and quality education. Despite their positive impact, these schools often encounter financial challenges that affect their growth and sustainability. Over the past decade, Varthana has played a crucial role by financing more than 9,500 affordable private schools and facilitating over 15,000 loans for school expansion and renovation. With a presence in 16 states/union territories and 40 branches, Varthana also extends its services to Tier III and Tier IV cities, significantly contributing to fostering accessible education in India.

 

Steve Hardgrave, the CEO of Varthana, said: "With this new investment, our commitment to transforming education in India will strengthen further. Varthana has consistently led efforts to bridge the access to quality education for low- and middle-income populations through financial support to budget private schools of India. We extend our heartfelt appreciation to Blue Earth Capital for joining us in our mission. With this investment, we aim to aspire more young minds in India for a better tomorrow."

 

Amy Wang, Head of Private Credit atBlue Earth Capital, stated: “We are excited to continue supporting Varthana, who has been a strong partner delivering unique high-impact social outcomes while demonstrating strong resilience throughout different market conditions. Today's follow-on investment will empower Varthana to expand its support to a wider network of affordable private schools as it resumed growth trajectory post COVID-19 pandemic. We believe this will have a tremendous impact on broadening the access to quality education in low-income communities in India."

 

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