Bangalore-based non-banking finance company (NBFC) Varthana on Wednesday raised $7 million (approximately INR 56 crore) from MicroVest, a US-based global investment firm.
Varthana will use the funds to transform affordable education in rural India and provide loans to affordable private schools on a pan-India basis. The funding will aid in Varthana’s goal of helping and supporting affordable schools to recover from the disruptions caused by COVID-19, according to the statement.
Founded in 2013, Varthana has a presence in 15 states through 40 branches and 150 spokes. In addition to providing loans, it has helped schools implement digital learning tools and teaching methods so that students can continue their distance education during the pandemic.
Steve Hardgrave, Co-founder and CEO of Varthana, said, “MicroVest is our long-term investment partner working to ensure access to quality education in India.”
He added, “The low-income schools we invest in are counting on inclusive financial services to get back to business after the unprecedented challenges they faced during the pandemic. With MicroVest’s support, Varthana is now in a stronger position to play a constructive role in helping these affordable I’m schooling.”
Joshua Moraczewski, CEO of MicroVest, said, “Varthana is a testament to the impact any dynamic financial institution can have when given the opportunity to scale its innovations and approaches. We are committed to supporting responsible financial institutions like Varthana. In this challenging post-COVID environment, their efforts are more important than ever.”