Auxilo Finserve Private Limited, a leading non-banking finance company (NBFC) focused on providing education finance in India, Tuesday announced that it has raised about $57 million (Rs470 crore) as primary equity capital in its recent fundraising round.
The capital infusion has been led by Tata Capital Growth Fund II, Trifecta Leaders Fund – I, and Xponentia Opportunities Fund – II, along with existing shareholder ICICI Bank Limited, Auxilo Finserve said in a statement.
The transaction closure is subject to necessary regulatory approvals.
“The capital infusion will enable the company to fuel its growth aspirations by expanding its loan base, broadening its product offerings, and providing innovative financial solutions to its customers,” said Auxilo Finserve MD & CEO Neeraj Saxena.
He added that the investors’ keen interest in the education finance market, which is a highly specialized and niche industry segment, reaffirms the sector’s attractiveness and the market’s confidence in its potential, business model, and growth trajectory.
Founded in 2017, Auxilo Finserve provides loans to students for pursuing education in India or overseas and loans to educational institutions for their infrastructure and working capital needs. The company claims to have funded 7,500+ students across more than 900 universities in over 25 countries. It has also provided finance to 150+ educational institutes for their infrastructure expansion and working capital requirements.
“Asset quality in overseas financing is pristine. NPAs [non-performing assets] are lower than in housing finance. The number of students going abroad is increasing every year. Most students are going for postgraduate courses but the numbers for undergraduate courses is also increasing. It’s an attractive market,” PR Srinivasan, Founder & managing partner, Xponentia Capital Partners told DealStreetAsia.
The company’s assets under management (AUM) had grown at 51% CAGR (compound annual growth rate) during FY20-23 and stood at Rs1,691 crores as of Mar 31, 2023. Auxilo operates out of seven key cities in India, with an employee strength of over 250 employees.
Recently, the company in association with the National Skill Development Corporation (NSDC) launched its new offering for students pursuing job-oriented courses for skilling, upskilling, and reskilling.