In a country where higher education is both a cultural aspiration and a gateway to economic mobility, the company has carved out a niche as India’s premier education-focused NBFC. With a singular focus on funding the dreams of students pursuing global academic opportunities, Credila has grown from a specialised lender into a strategic enabler of India’s outbound education wave.
The company chose to pursue the confidential filing route and received SEBI approval for the Credila Financial IPO on 15 May 2025. The company has filed its UDRHP1 (Updated Draft Red Herring Prospectus) and is expected to hit the primary market soon.
Born out of the HDFC Group and now backed by marquee investors like EQT, ChrysCapital, and Shinhan Bank, Credila Financial’s mission is clear — to bridge the financial gap between Indian ambition and international education. But before investors queue up, a comprehensive review is warranted to understand the company’s strengths, the market opportunity, its financial resilience, and the risks it must navigate.
Rise of Education Lending in India
India’s education financing space, traditionally dominated by public sector banks, is witnessing a remarkable transformation. In FY24 alone, NBFC retail education loans grew to INR 44,000 crore, up from INR 7,300 crore in FY19, translating to a staggering 43% CAGR over five years and an even more impressive 71% CAGR in the last three. This remarkable growth trajectory has been fuelled by rising aspirations for overseas education, limited domestic capacity in high-quality institutions, and a rapidly expanding middle class willing to invest in global academic opportunities.
What differentiates education loans from other NBFC segments is not just the growth rate but the asset quality. With Gross NPAs at just 0.6% in FY24, education loans outperform traditionally dominant segments like auto loans (5.1%) and housing loans (2.3%).
The surge is underpinned by:
- Escalating costs and ticket sizes (INR 25 Lakh+ per student for overseas education)
- Better return-on-investment for STEM programs in the US, UK, Canada, etc.
- Cultural prioritisation of education and strong parental support
- Favourable immigration policies offering post-study work options
The NBFC share in this market has risen rapidly due to speedier processing, flexible terms, and specialised underwriting.
Credila Financial IPO: Snapshot
IPO Details:
- IPO Type: Fresh Issue + Offer for Sale (OFS)
- Total Offer Size: INR 5,000 crore
- Fresh Issue: INR 3,000 crore
- Offer for Sale: INR 2,000 crore
Selling Shareholders in OFS:
- Kopvoorn B.V. (Promoter): INR 950 crore
- HDFC Bank Limited (Investor): INR 1,050 crore
Book Running Lead Managers (BRLMs):
- Axis Capital
- Citigroup Global Markets
- Goldman Sachs India
- IIFL Capital Services
- Jefferies India
Registrar to the Offer:
- KFin Technologies
Shareholding Pattern (Pre-IPO)
| Shareholder | Category | Stake (%) |
|---|---|---|
| Kopvoorn B.V. | Promoter | 90.01% |
| HDFC Bank | Public (Investor) | 4.99% |
| HDFC Life Insurance Company | Public (Investor) | 0.01% |
| Others (EQT, ChrysCapital, etc.) | Public (Investor) | 4.99% |
| Total | 100% |
Note: Post-IPO shareholding will change based on dilution via fresh issue and Offer for Sale
Credila Financial IPO: Business Overview
Credila Financial Services, formerly part of HDFC Group and now backed by EQT, is India’s leading education loan NBFC with a deep specialisation in financing higher education, primarily for students aspiring to study abroad.
FY25 Key Highlights:
- AUM: INR 41,810 crore (+48.3% YoY)
- Gross Loan Book: INR 41,709 crore
- Net Profit: INR 989 crore (+87.2% YoY)
- GNPA: 0.19% (lowest among education lenders)
- Collection Efficiency: 99.07% in FY25
- Disbursements per sales employee: INR 51.2 crore
Its loan book is heavily skewed toward international education:
- 51.54% AUM exposure to US-bound students
- 18.84% to UK; 11.99% to Canada
- Over 91.98% of AUM backed by earning co-borrowers
Credila operates an omni-channel, asset-light model, with eight regional hubs and 32 branches across 41 Indian cities, powered by over 1,672 distribution agents and an 861-member sales team.
Credila Financial IPO: Business Model Analysis
Credila Financial has built a defensible moat by specialising in a single, high-margin vertical — overseas education. Its technology stack, data-driven credit models, and global insights make it uniquely suited to scale this niche.
Revenue Streams:
- Interest Income: INR 4,165.5 crore in FY25, forming the bulk of total income
- Fee & Commission Income: INR 218.5 crore, derived from processing and service charges
- Portfolio Sell-downs: INR 103.4 crore via direct assignment to financial partners
- Foreign Borrowings & Social Loan Instruments: A growing share of liabilities
Operational Excellence:
- Cost-to-Income Ratio: Reduced to 19.65% in FY25 from 29.43% in FY23
- Net Interest Margin (NIM): Maintained near 4% despite a growing book
- Early Warning Systems: AI/ML-enabled alerts and dynamic provisioning
- Custom-Built Tech Stack: LOS, LMS, Data Lake, and real-time integrations
Credila employs risk-based pricing and highly tailored underwriting, assessing academic credentials, post-study employability, co-borrower profiles, and geopolitical factors. The result: minimal delinquency (0.08% to 0.21% over 60-month vintages) and superior returns.
Strengths
- Market Leadership: Largest education-focused NBFC in India
- Superior Asset Quality: GNPA of 0.19% vs 0.6% sector average
- Elite Parentage: Backed by EQT, HDFC entities, ChrysCapital, Shinhan Bank
- Tech-Enabled Risk Controls: ML-based underwriting, in-house LOS & LMS
- Robust Distribution: 1,672 agents; 1/3rd associated for over 5 years
- Diversified Funding Sources: 18.4% borrowings offshore; USD 512M raised via social loan
- Strong Liquidity: INR 6,382.7 crore in cash & equivalents; LCR at 343%
Risks
- Geopolitical Concentration: 50%+ AUM exposed to US students
- Policy Dependence: Immigration/work permit changes in top education destinations
- Regulatory Vigilance: RBI’s tighter NBFC norms could tighten margins
- Interest Rate Risk: 80.74% borrowings at variable rates vs 99.31% variable lending
- Concentration Risk: Over-reliance on top-3 study destinations
Financials at a Glance (₹ in Millions)
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| AUM | 41,810.4 | 28,187.2 | 15,297.7 |
| Net Profit | 990.0 | 528.8 | 275.9 |
| Interest Income | 4,165.6 | 2,535.4 | 1,301.4 |
| Net Interest Margin (%) | 3.95% | 3.85% | 4.13% |
| Disbursements | 15,308.9 | 14,089.2 | 7,991.7 |
| GNPA (%) | 0.19% | 0.08% | 0.17% |
| Debt-Equity Ratio (X) | 4.47 | 5.16 | 5.61 |
The robust capital profile is further underscored by a CRAR of 21.81%, well above the 15% regulatory minimum, and a reduction in debt-to-equity post-infusion of INR 5,580 crore over the past three years.
Credila Financial IPO: Promoter & Institutional Backing
In March 2024, Credila transitioned from the HDFC fold to become part of the EQT portfolio — a global PE investor known for strategic value creation. Yet, its DNA remains deeply rooted in HDFC’s legacy:
- 18 former HDFC executives on staff
- 5 of 19 Vice Presidents hail from HDFC
- Board of Directors includes BFSI, tech, and regulatory veterans
Institutional shareholders include HDFC Bank, HDFC Life, EQT, ChrysCapital, and Shinhan Bank, bringing together deep capital pools and sectoral expertise. The management team, led by Arijit Sanyal (ex-HDFC), brings an average experience of 16+ years across banking, credit, and fintech domains.
Outlook & Strategic Direction
Credila Financial IPO proceeds are intended to be used for:
- Enhance capital adequacy to fuel disbursement growth
- Deepen presence in Tier 2 and Tier 3 markets
- Expand to newer geographies and student destinations
- Explore product adjacencies like secured lending and co-lending
- Maintain strong asset-liability management and reduce the cost of funds
In a space where loan demand is booming but penetration remains just 10.5% (CY24), Credila is poised to ride the next wave of India’s overseas education revolution.
Final Word
Credila Financial Services is not just an NBFC — it is an education enabler, a socio-economic mobility engine, and a rare financial institution operating in a structurally sound, rapidly expanding niche. Its core strengths — low GNPA, robust growth, elite investors, high operational efficiency, and precision-focused underwriting — set it apart from traditional lenders.
As Indian students continue to march into global campuses, Credila will likely be the financier scripting their aspirations. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.