Fintech platform Varthana has successfully secured a debt funding of $2.5 million from Symbiotics Investments through education-focused social bonds. This financial injection marks a significant step forward for the startup in its mission to enhance educational accessibility.
Empowering Rural and Suburban Schools
Varthana’s immediate goal with the fresh funding is to make private schools in rural and suburban areas more accessible. The funds will be channeled into financing essential equipment purchases and supporting the construction and renovation of school facilities. Additionally, Varthana plans to extend its assistance to students by offering loans for vocational training, thereby enhancing educational opportunities.
Varthana’s Role in Education Finance
Established in 2013 by Brajesh Mishra and Steve Hardgrave, Varthana operates as a non-banking financial services company (NBFC). Its core mission is to provide education loans to both schools and students, contributing to the development of the education sector in India.
CEO’s Gratitude for Support
Expressing his gratitude for the funding, Varthana’s CEO and co-founder, Steve Hardgrave, emphasized the significance of Symbiotics’ support. He noted that this financial boost strengthens Varthana’s capacity to play a vital role in the post-COVID-19 recovery and the ongoing enhancement of schools across the nation.
Varthana’s Funding Journey
This funding round from Symbiotics marks the second successful fundraiser for Varthana in 2023. In January, the company secured a substantial debt funding of $7 million from MicroVest, a global investment firm based in the United States. During this earlier funding round, Varthana outlined its commitment to scaling up credit facilities, particularly for low-budget private schools that had been adversely affected by pandemic-related disruptions.
Since its inception, Varthana has impressively secured a total funding amount of $97.1 million, underlining its dedication to improving educational opportunities across India.
In the competitive landscape of affordable education support, Varthana faces competition from EduFund. Notably, in May, EduFund successfully raised $3.5 million in a funding round led by MassMutual Ventures. This financial boost aims to accelerate EduFund’s growth, develop innovative solutions, and invest in cutting-edge technology.
While Varthana and EduFund work towards enhancing educational accessibility, it’s important to note that, according to the Reserve Bank of India (RBI), the education loans market is predominantly dominated by public sector banks, accounting for 90% of the market share. Private sector banks and regional rural banks (RRBs) represent approximately 7% and 3% of the total outstanding education loans, respectively. This reflects the immense potential for innovative fintech platforms like Varthana to make a significant impact in the education finance sector.
