Mumbai-based education finance company Auxilo Finserve, a leading non-banking financial company (NBFC) specialising in education loans, has raised INR 225 crore (~USD 25.5 million) in a fresh debt round from Neo Group, Nuvama Wealth, Dezerv, and The South Indian Bank.
Auxilo’s Latest Funding: Structure & Participants
Auxilo issued 22,500 non-convertible debentures (NCDs) at a face value of INR 1,00,000 each to raise the funds. The NCDs carry an interest rate of 9.7% per annum with a three-year tenure, except for those issued to The South Indian Bank, which carry a 10% annual interest rate.
Auxilo’s latest funding round was led by Neo Group, contributing INR 100 crore, followed by Nuvama Wealth and Dezerv with INR 50 crore each, and The South Indian Bank with INR 25 crore.
Auxilo’s latest funding comes after Motilal Oswal Finvest earlier INR 50 crore debt investment in February 2025, in which it subscribed to 5,000 NCDs under two series carrying 9.7–9.8% interest rates and tenures of two and three years, respectively.
Auxilo’s Financial Momentum
Auxilo’s financial performance has seen remarkable acceleration in the past two years. For the fiscal year ended March 2025 (FY25), the firm’s operating revenue surged 48% year-on-year to INR 528 crore, up from INR 357 crore in FY24. Net profit soared 62% to INR 112 crore, underscoring the company’s expanding scale and profitability.
Quarterly results echo this momentum: in the June 2025 quarter, sales rose 48.19% to INR 164.05 crore, while net profit grew 49.74% to INR 31.97 crore compared to the same quarter in 2024, as per Capital Market data.
Track Record and Growth Drivers
Founded in 2016, Auxilo provides education loans for higher studies in India and abroad and extends infrastructure financing to educational institutions. The firm’s products cover all educational expenses, from tuition fees and classroom costs to travel and pre-visa approvals.
Auxilo has been attracting marquee investors. It had raised INR 470 crore in equity in July 2023 from Tata Capital Growth Fund II, Trifecta Leaders Fund-I, Xponentia Opportunities Fund-II and ICICI Bank. The funds were used to scale up the loan book and launch new products, including skill-based education loans in partnership with National Skill Development Corporation (NSDC).
In July 2024, the company raised another INR 279 crore in equity, led by LeapFrog Investments, which invested USD 30 million (~INR 250 crore), marking the first investment by LeapFrog in India’s education finance space. Trifecta and Xponentia invested USD 3-4 million. The round valued Auxilo as one of India’s fastest-growing edu-fintech NBFCs.
Operational Scale and Market Position
As of FY24, Auxilo’s loan book had grown at a 75% CAGR between FY21 and FY24, reaching INR 2,878 crore. The company reported having funded over 12,000 students across 1,100 universities in more than 30 countries, in addition to providing financing to over 170 educational institutions for infrastructure and working capital needs.
In an earlier disclosure, Auxilo noted that it had funded over 7,500 students across 900 universities in 25 countries by mid-2023, reflecting rapid expansion in its customer base and disbursement volumes. The company aims to disburse INR 25,000 crore to more than 1,50,000 students over the next five years, signalling ambitious growth in both domestic and overseas education lending.
Sectoral Context: Rising Demand in Edu-Fintech
While India’s edtech sector has cooled since its pandemic-era peak, investor confidence remains high in education finance—a subsegment combining fintech with access to education. From 2024 to mid-2025, edtech startups raised USD 1.2 billion (~INR 10,700 crore), with over 35% (USD 424 million) flowing into companies enabling education loans and financial accessibility.
Auxilo’s consistent ability to raise capital—both debt and equity—amid this selective funding environment highlights its strong credit profile, scalable business model, and market confidence in the education finance domain.
Verdict
Auxilo’s mix of growth, debt structuring and expansion makes it one of the strongest players in India’s education finance space. Its diversified funding, institutional investor partnerships and alignment with national skilling and higher education goals make it strategically relevant in a sector that is socially impactful and financially attractive.
With Auxilo’s latest funding of INR 225 crore, the company will strengthen its liquidity to support growing loan demand and further consolidate its position as a key player in India’s education finance transformation.
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