Avanse Financial Services raises Rs 1,000 crore in funding led by Abu Dhabi-based Mubadala

A non-banking financial company (NBFC) focused on education, Avanse Financial Services, has raised Rs 1,000 crore ($120 million) in a funding round led by the Abu Dhabi-based Mubadala Investment Company.

Avendus PE Investment Advisors Private Limited, through its Avendus Future Leaders Fund II, also participated. 

What is the purpose of fundraising?

The raised funds will be used for several strategic initiatives aimed at propelling Avanse to new heights. Amit Gainda, the Managing Director and CEO of Avanse Financial Services highlighted the plan to enhance the brand's proposition, integrate digital solutions comprehensively, and innovate across their product range.

Gainda emphasized the goal of creating unique customer experiences and achieving sustained, profitable growth, ultimately fulfilling a larger number of academic aspirations.

Providing financing solutions 

As of December 2023, Avanse had approximately Rs 12,147 crore in assets under management (AUM). The company provides a wide array of financing solutions, catering to students pursuing higher education both in India and abroad and educational institutions seeking expansion and operational funding. 

Backing from notable investors

Avanse is backed by notable investors, including Warburg Pincus, Kedaara Capital, and the International Finance Corporation. 

Mubadala's investment in Avanse is part of its broader strategy to diversify and deepen its portfolio across Asia. The Abu Dhabi fund has been actively expanding its investments in the region, including significant stakes in healthcare, infrastructure, and renewable energy sectors. 

What did the investors say about Avanse?

“Avanse will continue to enable young generations of Indian students to fulfil their aspirations. We are thrilled to partner with Amit and the management team of Avanse alongside institutions of the calibre of Warburg Pincus, Kedaara Capital and the International Finance Corporation. We look forward to further enabling the growth of the business," said Luca Molinari, Head of Asia and Financial Services at Mubadala.

Narendra Ostawal, Managing Director and Head of India, Warburg Pincus, said: “Avanse, driven by its vision to democratise education in India, has transformed into one of India’s premier education finance companies. As patient growth investors, we remain committed to supporting Amit and his team in continuing to scale Avanse — a commitment that has been central to our partnership."