Bengaluru, India
9 December, 2024

Varthana, a leading Non-Banking Finance Company (NBFC) dedicated to transforming affordable private education in India, has successfully received USD 15 million (120 crores) funding from BlueOrchard Microfinance Fund, managed by BlueOrchard, a leading impact investor, through the External Commercial Borrowings (ECB) framework. Varthana provides loans to affordable private schools and students pursuing domestic higher education in India.

This funding marks a significant milestone for Varthana as it advances its mission to make quality education both accessible and affordable in underserved communities across India. The funds will be strategically utilized to expand Varthana’s lending portfolio, providing private schools and vocational students in Tier 2 and Tier 3 cities with essential financial support for infrastructure enhancement and skill-based learning initiatives.

This partnership with BlueOrchard Microfinance Fund underscores the trust in Varthana’s vision to bridge the education gap in India by empowering affordable education institutions and improving learning outcomes for millions of students. Through its innovative solutions, Varthana has enabled thousands of private schools to upgrade their facilities and enhance teaching standards, driving measurable improvements in student success.

Commenting on the significance of this funding, Mr. Steve Hardgrave, the CEO of Varthana, said: “We are thrilled to receive this second round of funding from BlueOrchard Microfinance Fund, which strengthens our commitment to transforming education in underserved communities. These funds will allow us to reach more schools and families, enabling them to access the resources they need to create impactful learning environments. We are driving meaningful change and empowering the next generation with better opportunities to learn, grow, and thrive.”

Varthana has played a crucial role by financing more than 11,000 affordable private schools and facilitating over 16,500 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.

Yan Kit Lee, Head of Originations, Asia, at BlueOrchard Investments (Singapore) Pte Ltd, stated: “This facility represents BlueOrchard and Varthana’s mutual commitment and recognition of inclusive education’s crucial role in achieving sustainable development, and uplifting the future generations of India. We are excited to journey alongside Varthana as they continue to transform the affordable education sector at scale.”