Varthana Finance raises Rs 159 Cr debt funding from impact-focused global investors

Varthana, an education-focused Non-Banking Finance Company (NBFC), has raised Rs 159 crore in debt funding from three global impact investors, BlueEarth Capital, ResponsAbility and Franklin Templeton Alternative Investments (Franklin Templeton AIF).

The company raised funds through a mix of external commercial borrowing (ECB) and non-convertible debentures (NCD), securing Rs 69 crore from Switzerland-based BlueEarth Capital (via ECB), Rs 65 crore from ResponsAbility (via NCD) and Rs 25 crore from Franklin Templeton AIF (via NCD). 

The capital will be used to grow its affordable private school network and add solar and renewable energy systems to partner schools.

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“The investment from BlueEarth Capital and Franklin Templeton AIF will strengthen our network of affordable private schools, while the investment from ResponsAbility will support the integration of clean energy solutions by fostering sustainability and long-term resilience in school operations,” said Steve Hardgrave, CEO of Varthana.

Amy Wang, Head of Private Credit at BlueEarth Capital, said, “This is our third collaboration with Varthana, with whom we share the belief that inclusive access to quality education is a cornerstone for long-term social and economic progress. We are proud to continue our support of Varthana in its mission to drive meaningful impact in India’s education sector.”

Nidhi Nathani, Investment Officer at ResponsAbility, said, “At ResponsAbility, we invest in businesses that deliver measurable, positive change in emerging markets, with focus on financial inclusion, climate finance and sustainable food. Education is the cornerstone of progress and we are happy to support Varthana’s mission to democratize access to quality education.”

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About Varthana 

Co-founded in 2013 by Steve Hardgrave and Brajesh Mishra, Varthana is a non-banking financial company (NBFC) that provides loans to affordable private schools and students pursuing higher education. It supports school infrastructure upgrades, teacher training, and student financing, to improve access to quality, affordable education across India.

Varthana operates in 16 states and union territories through 40 branches. It has supported over 12,000 affordable private schools with more than 19,000 loans and also offers education financing to students pursuing college degrees and vocational training.