Avanse Financial to Raise $250 Million
Avanse Financial Services, among India’s top education-focused NBFCs, is set to raise $200–250 million in a private placement round, primarily through a secondary sale of shares. Some part will be raised as primary capital to bolster its balance sheet and fuel growth in the future. This follows Avanse’s decision to postpone its ₹3,500 crore IPO plans, having already secured SEBI approval in October 2024, on account of soft market conditions and subdued investor sentiment in 2025.
Avanse has witnessed strong growth in the last year. Its Assets Under Management (AUM) increased 66% to ₹13,303 crore in FY24, from ₹8,646 crore in FY23. FY24 revenue reached ₹1,729 crore, while net profit doubled more than twice to ₹342 crore, driven by increased demand for international education loans. Avanse leads with about 24% of India’s international education loan market, after HDFC Credila.
The company has seen considerable investor interest over the years, with investors such as Warburg Pincus, Kedaara Capital, IFC, Mubadala, and Avendus PE investing in it. Avanse has taken ₹1,200 crore from Mubadala, Avendus, and Kedaara in FY24 alone.
With Indian IPOs experiencing soft demand—most recording single-digit listing returns—Avanse has chosen private funding to maintain its momentum. The funds will be employed in expanding its loan book, developing digital capabilities, and broadening its presence among Indian students studying abroad.
The planned funding round may set the stage for a future listing once market conditions normalize.
