This marks Mubadala’s first investment in the financial services sector in India
The deal is part of Mubadala’s larger vision of growing its exposure in Asia
Mubadala Investment Company (“Mubadala”), the Abu Dhabi based investment company announced today that it is investing in Avanse Financial Services Ltd. (Avanse), India’s new age, technologically advanced, education-focused non-banking financial company (NBFC). Mubadala led this round of funding through its affiliate Alpha Investment Company LLC with participation from Avendus PE Investment Advisors Private Limited via its fund Avendus Future Leaders Fund II. The funds will enable Avanse to strengthen its position in the rapidly evolving education financing segment, focusing on creating unique customer experiences and achieving sustained profitable growth.
This investment marks Mubadala’s first in the financial services sector in India and is part of a plan to double the company’s exposure in Asia by 2030.
Avanse is the second largest NBFC in India and has been on a strong growth trajectory as it plays a transformational role in the education financing sector. As of December 2023, the company’s AUM stands at ~AED 5.5 billion. Its 9-month FY24 disbursement is ~AED 2.2 billion, total revenue is ~AED 550 million. and profit after tax is ~AED 110 million. Avanse, through its decade-long journey, has fulfilled the educational dreams of ~400,000 Indian academic aspirants across various countries. The company has also provided growth and working capital to ~2K educational institutes.
“Avanse is an established leader in a market that will continue to enable young generations of Indian students to fulfil their aspirations. We are thrilled to partner with Amit and the management team of Avanse alongside institutions of the caliber of Warburg Pincus, Kedaara Capital and the IFC. We look forward to further enabling the growth of the business”, said Luca Molinari, Head of Asia and Financial Services at Mubadala.
Commenting on this development, Amit Gainda, Managing Director & CEO, Avanse Financial Services, said, “We are delighted to welcome our new strategic investors, who share a common vision of strengthening the education financing segment in India. Along with them, we also appreciate the constant support of our existing shareholders, Warburg Pincus, Kedaara Capital, and International Finance Corporation. They not only have recognised the profound impact of making education financing accessible and affordable but also believe in our brand ethos and our core belief that no deserving student should miss an opportunity to access quality education due to the lack of financing, irrespective of their social strata or co-borrower’s financial background. The growth capital will enable us to strengthen our brand proposition, integrate digital solutions and innovate to build more depth into our product range as we work towards delivering greater stakeholder value.”
