Non-banking finance company Varthana raises $15 million from BlueOrchard Microfinance Fund to support education in underserved areas.
Varthana, a non-banking finance company (NBFC) committed to transforming affordable education in India, has raised $15 million (Rs 120 crore) in funding from the BlueOrchard Microfinance Fund. This new investment marks a significant milestone for Varthana as it expands its mission to bridge the education gap in India’s Tier 2 and Tier 3 cities.
The funding, structured under the External Commercial Borrowings (ECB) framework, will be used to empower thousands of affordable private schools and vocational students across the country. With a clear focus on accessible education in underserved areas, Varthana is working to ensure that the quality of education improves, benefiting millions of students nationwide.
Let’s dive into how this new funding will make a difference and explore the work Varthana has been doing in the education sector.
Founded in 2013 by Steve Hardgrave and Brajesh Mishra, Varthana is dedicated to providing financial support to affordable private schools in India. The company’s primary goal is to help schools in underserved areas expand, renovate, and improve their infrastructure. This is especially important as the quality of education in rural and semi-urban areas often faces significant challenges, from lack of facilities to outdated resources.
Varthana offers loans to schools for purposes such as:
The company has already made a significant impact, providing over 16,500 loans to more than 11,000 affordable private schools. These loans have helped schools enhance teaching standards and learning outcomes, making education more accessible to a large number of students. Varthana is present in 16 states and operates 40 branches, ensuring its services reach schools in both rural and urban areas.
With the $15 million funding, Varthana plans to expand its lending portfolio and increase its reach to more schools and students, further enhancing the quality of education. The new capital will primarily be used to:
The ultimate aim is to reach 10 million students by 2025—an ambitious yet crucial goal that will create more educational opportunities for children across India. As schools upgrade their infrastructure and offer better facilities, students will benefit from an enhanced learning experience that could change their futures.
Varthana’s work goes beyond just providing loans; it’s about transforming education at the grassroots level. Many of India’s private schools operate in areas where public education systems may be insufficient, leaving students with few options. By providing schools with access to financial resources, Varthana helps improve the infrastructure and quality of education in these communities.
Steve Hardgrave, CEO of Varthana, said,
“We are thrilled to receive this second round of funding from BlueOrchard. These funds will allow us to reach more schools and families, enabling them to access the resources they need to create impactful learning environments.”
By empowering schools with the right resources, Varthana helps ensure that students receive a high-quality education that prepares them for the future.
The partnership between Varthana and BlueOrchard is rooted in a shared vision to promote inclusive education and sustainable development in India. BlueOrchard is known for supporting organizations that drive financial inclusion and help improve access to essential services such as education and healthcare.
Yan Kit Lee, Head of Originations, Asia at BlueOrchard Investments, commented:
“This facility represents BlueOrchard and Varthana’s mutual commitment to inclusive education’s crucial role in achieving sustainable development and uplifting future generations in India. We are excited to support Varthana as they continue transforming the affordable education sector at scale.”
The collaboration strengthens the efforts to provide affordable, high-quality education to those who need it the most, ensuring that more children have the chance to succeed.
Since its inception, Varthana has made an indelible impact on India’s educational landscape. By supporting schools with financial products designed for their specific needs, Varthana has been able to expand access to quality education in underserved areas. Here’s a quick look at the milestones so far:
With this funding, Varthana is set to reach even more schools and students, further broadening its impact.
The $15 million investment will allow Varthana to scale its operations and offer even more support to schools and students. As the company works to expand its services, it remains focused on its goal of providing educational access to 10 million students by 2025.
Education is the key to empowering India’s youth, and Varthana’s efforts are helping transform the educational landscape for future generations. With more schools and students benefiting from financial support, Varthana is poised to play a pivotal role in the next chapter of India’s educational revolution.
Varthana’s recent funding of $15 million is a major step forward in its mission to enhance education across India, especially in underserved areas. With a strong focus on infrastructure development and financial support for students, Varthana is playing a crucial role in shaping the future of affordable education. By empowering schools, students, and educators, the company is contributing to India’s vision of inclusive education and sustainable development.
