Mubadala invests in Avanse Financial Services to support academic dreams in India


ABU DHABI: Mubadala Investment Company (Mubadala) announced today that it is investing in Avanse Financial Services Ltd. (Avanse), India’s new age, technologically advanced, education-focused non-banking financial company (NBFC). Mubadala led this round of funding through its affiliate Alpha Investment Company LLC with participation from Avendus PE Investment Advisors Private Limited via its fund Avendus Future Leaders Fund II. The funds will enable Avanse to strengthen its position in the rapidly evolving education financing segment, focusing on creating unique customer experiences and achieving sustained profitable growth.

This investment marks Mubadala’s first in the financial services sector in India and is part of a plan to double the company’s exposure in Asia by 2030.

Avanse is the second largest NBFC in the education finance space in India and has been on a strong growth trajectory as it plays a transformational role in the education financing sector and has fulfilled the educational dreams of India
n academic aspirants across various countries. The company has also provided growth and working capital to Indian educational institutions As of December 2023, the company’s AUM stands at around AED5.5 billion.

‘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 IFC. 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. We are thrilled to collaborate with Mub
adala Investment Company as Avanse continues to advance its long-term objectives.’

Commenting on this development, Amit Gainda, Managing Director and CEO, Avanse Financial Services, said, ‘We are delighted to welcome our new strategic investors, who share a common vision of strengthening the education financing segment in India. Along with them, we also appreciate the constant support of our existing shareholders, Warburg Pincus, Kedaara Capital, and International Finance Corporation. They not only have recognised the profound impact of making education financing accessible and affordable but also believe in our brand ethos and our core belief that no deserving student should miss an opportunity to access quality education due to the lack of financing, irrespective of their social strata or co-borrower’s financial background. The growth capital will enable us to strengthen our brand proposition, integrate digital solutions and innovate to build more depth into our product range as we work towards delivering
greater stakeholder value.’

Source: Emirates News Agency