Mubadala Investment Company, the Abu Dhabi-based investment company, has invested in India’s new age, technologically advanced, education-focused non-banking financial company (NBFC), Avanse Financial Services Ltd. (Avanse).
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 Indian 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 ~$2 billion.
Luca Molinari Head of Asia & Financial Services, Mubadala
“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 caliber of Warburg Pincus, Kedaara Capital and the IFC. We look forward to further enabling the growth of the business.”
Narendra Ostawal, Managing Director and Head of India, Warburg Pincus, said that, “Avanse, driven by its vision to democratize 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 Mubadala Investment Company as Avanse continues to advance its long-term objectives.”
Amit Gainda, Managing Director & CEO of Avanse Financial Services, stated that, “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. 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.”
