Mubadala Investment Company has invested in India’s financial services sector for the first time when it invested in Avanse Financial Services, an education-focused non-banking financial company (NBFC) in the country.
This is part of a plan for Mubadala to double its exposure in Asia by 2030.
While Mubadala did not disclose the quantum of their investment, Indian media said the round raised approximately INR 1,000 crore $120 million for Avanse
Avanse is the second largest NBFC in the education finance space in India and has been on a strong growth trajectory as it plays a critical role in the education financing sector. It has helped fulfill the educational dreams of Indian academic aspirants across various countries.
The company has also provided growth and working capital to Indian educational institutions. As of December 2023, the company’s AUM stands at around AED5.5 billion ($1.5 billion).
Mubadala led the round of funding through its affiliate Alpha Investment Company. Also participating were Avendus PE Investment Advisors via its fund Avendus Future Leaders Fund II.
Luca Molinari, Head of Asia and Financial Services at Mubadala, commented: “Avanse will continue to enable young generations of Indian students to fulfil their aspirations. We are thrilled to partner with Amit (Gainda, MD and CEO Avanse) and the team alongside institutions like Warburg Pincus, Kedaara and International Finance Corporation (IFC). We look forward to further enabling the growth of the business.”
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.
Commenting on this development, Gainda 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.
“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.”
Warburg Pincus, the US-based PE equity firm acquired 80% of Avense in 2019.
Narendra Ostawal, Managing Director and Head of India, Warburg Pincus, added: “Avanse, driven by its vision to democratise education in India, has transformed into one of India’s premier education finance companies.
“As patient growth investors, we remain committed to supporting Amit and his team in continuing to scale Avanse — a commitment that has been central to our partnership. We are thrilled to collaborate with Mubadala as Avanse continues to advance its long-term objectives.”
Follow us on
