Bengaluru-based NBFC firm Varthana raises Rs 159 crore in debt funding

Bengaluru-headquartered Non-Banking Financial Company (NBFC) Varthana has raised Rs 159 crore (approximately $18.6 million) in debt funding from a trio of global investors, including BlueEarth Capital, Franklin Templeton Alternative Investments (Franklin Templeton AIF), and responsAbility.

The funding comprises Rs 69 crore in external commercial borrowings (ECBs) from Swiss-based BlueEarth Capital, Rs 65 crore via non-convertible debentures (NCDs) subscribed by impact investment firm responsAbility, and an additional Rs 25 crore infusion from Franklin Templeton AIF.

The firm plans to deploy the capital to bolster access to affordable private education across India, improve school infrastructure, and integrate sustainable, energy-efficient systems, including solar power.

"The investment from BlueEarth Capital and Franklin Templeton AIF will strengthen our network of affordable private schools, while the investment from responsAbility will support the integration of clean energy solutions by fostering sustainability and long-term resilience in school operations," said Varthana co-founder Steve Hardgrave.

Founded in 2013 by Hardgrave and Brajesh Mishra, Varthana has emerged as a key player in India’s education finance ecosystem. The firm provides low-cost, collateral-free loans tailored for affordable private schools and student borrowers. Its products include loans of up to Rs 5 lakh for higher education, pre-university degrees, certification programs, and skill enhancement courses.

Currently active in 40 cities across 16 states, Varthana claims to have financed more than 12,000 private schools and disbursed over 75,000 loans since its inception.

The latest funding round follows Varthana's earlier Rs 75 crore debt raise from OfBusiness and its financial arm Oxyzo in March 2025. To date, the NBFC has raised close to $180 million in equity and debt from investors including Elevar Equity, Omidyar Network, and ChrysCapital.