Varthana Finance, an education-focused non-banking financial company (NBFC), on Wednesday said it raised Rs 159 crore in debt funding from three global impact investors, BlueEarth Capital, ResponsAbility, and Franklin Templeton Alternative Investments (Franklin Templeton AIF).
It secured the funds through a combination of external commercial borrowing (ECB) and non-convertible debentures (NCD), and includes Rs 69 crore from Switzerland-based BlueEarth Capital (via ECB), Rs 65 crore from ResponsAbility (via NCD), and Rs 25 crore from Franklin Templeton AIF (via NCD).
The firm will use the capital to expand its affordable private school network and integrate solar and renewable energy infrastructure in its partner schools.
“The investment from BlueEarth Capital and Franklin Templeton AIF will strengthen our network of affordable private schools, while the investment from ResponsAbility will support the integration of clean energy solutions by fostering sustainability and long-term resilience in school operations,” said Steve Hardgrave, CEO of Varthana, in a statement.
Varthana provides loans and academic support to small, affordable private schools that primarily serve students from low-income households, helping these institutions expand infrastructure and improve access to quality education across India. These schools are often structured as trusts or societies, making it difficult for them to access conventional credit.
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Amy Wang, Head of Private Credit at BlueEarth Capital, said, “This is our third collaboration with Varthana, with whom we share the belief that inclusive access to quality education is a cornerstone for long-term social and economic progress. We are proud to continue our support of Varthana in its mission to drive meaningful impact in India’s education sector.”
Founded in 2013 and headquartered in Bengaluru, Varthana operates across 16 states and union territories through 40 branches. It has supported over 12,000 affordable private schools with over 19,000 loans. The company also provides education financing to students pursuing college and vocational training.
A spokesperson for Franklin Templeton AIF added, “Varthana’s strong track record in bridging India’s education gap through innovative financing demonstrates the transformative potential of accessible education. We’re pleased to partner in their continued drive for inclusive growth and lasting impact.”
Nidhi Nathani, Investment Officer at ResponsAbility, said, “At ResponsAbility, we invest in businesses that deliver measurable, positive change in emerging markets, with focus on financial inclusion, climate finance and sustainable food. Education is the cornerstone of progress and we are happy to support Varthana’s mission to democratize access to quality education.”
Edited by Suman Singh
