Kedaara Capital invests Rs 800 cr in NBFC Avanse Financial

Kedaara Capital, a homegrown private equity firm, will infuse ₹800 crore in Avanse Financial Services Ltd. (Avanse), the education-focused non-banking financial company (NBFC).
The fund will be deployed to expand its presence and outreach to a larger number of Indian students, said a press release. Warburg Pincus continues to be the majority shareholder in Avanse.

The company’s AUM stands at ₹8,000 crore as of December 2022, reporting a 1.9x growth over the same period last fiscal. During 9MFY2023, Avanse witnessed the highest-ever growth in its loan disbursement of ₹4,850 crore, delivering 2.5x growth over the same period last fiscal.

As a student-centric organisation, Avanse has a client base of 3 lakh students across 3,000+ institutes and 25,000+ courses in over 50 countries.

“While Warburg Pincus & IFC continue to be supportive partners in our journey, we are now delighted to have Kedaara Capital on board. As the world recovered post the pandemic, we witnessed a significant resurgence of students seeking higher education at international locations. We have responded with agility, leveraging technology to develop customised financing solutions to address unique student demands," said Amit Gainda, Managing Director & CEO, Avanse Financial Services.

Commenting on the investment, Sunish Sharma, Managing Partner and Co-CEO, Kedaara Capital said, “We look forward to using our operational expertise and experience in the financial services space to help them realise their long-term vision.”

Avendus Capital acted as the exclusive financial advisor for the transaction, and Khaitan & Co. acted as legal
counsel to Kedaara Capital.