Avanse Financial Services, an education-focussed NBFC, has raised $15 million from World Business Capital Inc, a US-based financial institution.
This funding is backed by guarantee from US International Development Finance Corporation (US DFC) via external commercial borrowing (ECB) route.
Avanse Financial has received this long-tenure (10 years) social impact funding under US DFC’s women empowerment initiative – ‘2X Women’s Initiative’ – as 30 per cent of the students funded by this NBFC are women educational aspirants.
The ‘2X Women’s Initiative’ aims to catalyse investment in projects that are owned by, led by, or empower the world’s women and supports the administration of Women’s Global Development & Prosperity Initiative (W-GDP).
Amit Gainda, CEO, Avanse Financial Services, said : “ECB is a unique way of raising funds from the best of global platforms. Based on this process, we have been able to create a new category of long-tenure social impact funding. The fund will be utilised to help more number of deserving Indian students to fulfil their academic aspirations. We will create strategic deployment plans to support the expansion and fulfilment of education aspirations of deserving students.”
Avanse Financial Services is dedicated to create robust platforms to motivate women student participation in higher education. “We strongly believe that educating women results into empowered families, stronger societies, a knowledgeable economy and ultimately, a prosperous nation. Hence, we will continue to develop products and services to encourage women to pursue their academic aspirations,” Gainda added.
Recently, Avanse Financial Services secured ₹250 crores under Government and regulatory initiatives. About ₹100 crorehave been raised through the Targeted Long Term Repo Operation (TLTRO) window 2.0 by RBI from leading public sector banks and ₹150 crores under the Partial Credit Guarantee (PCG) Scheme. Avanse Financial is one of the pioneers to have started funding non-conventional courses along with the large conventional ones. The NBFC funds courses such as STEM programs, MBA programs and also some of the non-conventional courses such as photography, music, aviation and animation that students want to pursue both in India and in international markets.