Varthana, a leading Non-Banking Finance Company (NBFC) dedicated to transforming affordable private education in India, has successfully received $15 million (INR 120 crores) in funding from BlueOrchard Microfinance Fund, managed by BlueOrchard, a leading impact investor, through the External Commercial Borrowings (ECB) framework.
This funding marks a significant milestone for Varthana as it advances its mission to make quality education accessible and affordable in underserved communities across India. With this funding, the Bengaluru-based company plans to expand its lending portfolio, providing private schools and vocational students in Tier 2 and 3 cities with essential financial support for infrastructure enhancement and skill-based learning initiatives.
Varthana was founded in 2013 with a vision to transform affordable education in India by supporting the country’s many private school leaders. The platform aims to meet the needs of affordable private school owners by providing loan capital so they can expand their infrastructure, invest in teacher training, and introduce new learning methods into their classrooms. The firm does this by providing timely loans and support, specifically catering to the needs of affordable private schools so school leaders can secure valuable resources without going through a long and challenging process. It also supports schools with academic and management solutions that help school leaders deliver an excellent education to their students and be recognized as the top school in their community.
Commenting on the significance of this funding, Steve Hardgrave, the CEO of Varthana, said:
We are thrilled to receive this second round of financing from BlueOrchard Microfinance Fund, which strengthens our commitment to transforming education in underserved communities. These funds will allow us to reach more schools and families, enabling them to access the resources they need to create impactful learning environments. We drive meaningful change and empower the next generation with better opportunities to learn, grow, and thrive.
Varthana has played a crucial role by financing more than 11,000 affordable private schools and facilitating over 16,500 loans for school expansion and renovation. With a presence in 16 states/union territories and 40 branches, Varthana extends its services to Tier III and IV cities, significantly fostering accessible education in India.
Yan Kit Lee, Head of Originations, Asia, at BlueOrchard Investments (Singapore) Pte Ltd, stated:
This facility represents BlueOrchard and Varthana’s mutual commitment and recognition of inclusive education’s crucial role in achieving sustainable development and uplifting the future generations of India. We are excited to journey alongside Varthana as they continue to transform the affordable education sector at scale.
This partnership with BlueOrchard Microfinance Fund underscores the trust in Varthana’s vision to bridge the education gap in India by empowering affordable education institutions and improving learning outcomes for millions of students. Through its innovative solutions, the startup has enabled thousands of private schools to upgrade their facilities and enhance teaching standards, driving measurable improvements in student success.
Varthana endeavours to be a school’s most valuable and long-term partner as it grows and improves to reach its full potential. It accomplishes this by being agile, responsive and supportive while ensuring minimal disruption in the school’s daily routine. It aims to make education accessible to over 10 million students by 2025.
