Auxilo Finserve, India’s leading non-banking finance company focused on providing education finance, has recently announced that it has raised $57.4 million (INR 470 crore) as a primary equity capital in its recent investment round. The round was led by Tata Capital Growth Fund II, Trifecta Leaders Fund – I and Xponentia Opportunities Fund – II. Xponentia has committed to invest Rs 110 crore in the company. Existing investor ICICI Bank Limited also participated in the funding mop-up.
Founded in 2017, Auxilo Finserve aims to enable the freedom of financial access across the country by building inclusive financial algorithms and models that look at potential financing rather than the usual route of pure-play credit financing. The platform offers loans to higher and international education students and learners pursuing skills development. The firm believes that it’s the right of every student to avail of quality education. It is taking steps towards ensuring that students acquire the knowledge, skills and dispositions needed to achieve their individual goals and maximize their contribution to society and the country.
Speaking on the fundraising, Managing Director & CEO of Auxilo Finserve, Neeraj Saxena, said:
Auxilo plans to use the capital to fuel its growth aspirations by expanding its loan base, broadening its product offerings, and providing innovative financial solutions to its customers. The investors’ keen interest in the education finance market, a highly specialized and niche segment, reaffirms its attractiveness and the market’s confidence in its potential, business model and growth trajectory.
Auxilo claims to have funded 7,500-plus students across more than 900 universities in over 25 countries. It has also financed 150-plus educational institutions for infrastructure expansion and working capital requirements.
With this funding, the company plans to broaden its product offerings and enhance its technological capabilities.
Sandeep Bapat, Partner, Trifecta Growth Equity, added:
The company’s strong management team, extensive use of technology in underwriting and collections, and infusion of significant equity financing will provide a solid foundation for Auxilo’s continued growth in the large and growing Education Loan market.
In 2018, Auxilo had raised $5.7 million (INR 37.5 crore) from sugar manufacturing company Balrampur Chini Mills Ltd. Since its inception, the startup has raised over $100 million across equity and debt.