Bengaluru-headquartered Non-Banking Financial Company (NBFC) Varthana has raised INR 159 crore (~USD 18.6 million) in debt funding from a consortium of global impact investors. The capital infusion will be strategically deployed to strengthen India’s network of affordable private schools and accelerate the integration of renewable energy solutions across educational institutions.
Varthana Debt Funding Details
Varthana debt funding round comprises a mix of External Commercial Borrowing (ECB) and Non-Convertible Debentures (NCDs), underlining investor confidence in Varthana’s dual mission of promoting inclusive education and clean energy. The breakdown of the investment is as follows:
- INR 69 crore from Switzerland-based BlueEarth Capital via ECB
- INR 65 crore from impact-focused ResponsAbility via NCD
- INR 25 crore from Franklin Templeton Alternative Investment Fund (AIF) via NCD
This funding marks a continuation of the company’s successful partnership with BlueEarth Capital, now in their third collaboration, underscoring a deepening alignment between investor vision and the company’s impact-first philosophy.
“Varthana is pleased to partner with BlueEarth Capital, Franklin Templeton AIF, and ResponsAbility in our efforts to drive impactful change in the education sector and make quality education accessible to all across India,” said Steve Hardgrave, CEO and Co-founder of Varthana.
Expanding Affordable Private Education and Renewable Energy Adoption
The company plans to channel the capital toward expanding its support for low-cost, affordable private schools, many of which serve students from low-income and underserved communities. These institutions—often run by charitable trusts or societies—typically face major hurdles in accessing traditional forms of credit due to a lack of collateral and formal credit history.
The new funds will help the NBFC:
- Expand its lending footprint in Tier II and Tier III cities
- Finance infrastructure upgrades, teacher training, and academic development
- Accelerate the deployment of solar and renewable energy solutions in schools
“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,” Hardgrave added.
This integrated approach aims to address two of India’s pressing challenges: access to quality education and climate-resilient infrastructure.
A Decade of Impactful Lending
Founded in 2013 by Steve Hardgrave and Brajesh Mishra, Varthana has emerged as a pioneering force in education-focused lending. Over the past decade, the NBFC has:
- Financed over 12,000 affordable private schools
- Disbursed more than 19,000 school loans
- Built a pan-India presence across 16 states and union territories
- Established 40 branch offices, with deep reach into semi-urban and rural geographies
Varthana also provides education financing to students pursuing higher education, including vocational training, pre-university programs, and skill development courses, with loan amounts extending up to INR 5 lakh.
Investor Endorsements Reinforce Mission
Varthana debt raise has drawn praise from key stakeholders across the investing consortium:
- Amy Wang, Head of Private Credit at BlueEarth Capital, emphasized, “Inclusive access to quality education is a cornerstone for long-term social and economic progress. We are proud to continue supporting Varthana.”
- Nidhi Nathani, Investment Officer at ResponsAbility, said, “Education is the cornerstone of progress. We are happy to support Varthana’s mission to democratize access to quality education.”
- A spokesperson from Franklin Templeton AIF noted, “Varthana’s strong track record in bridging India’s education gap demonstrates the transformative potential of accessible education.”
Looking Ahead
As India moves towards net zero, Varthana is at the intersection of financial inclusion and climate action. Expanding on solar infrastructure in schools not only reduces costs but also ensures power supply, a critical need in online learning.
Conclusion
Varthana debt funding is more than a milestone – it’s the convergence of impact capital, education and sustainable innovation. At a time when India’s education landscape is ready for a change, Varthana is a model of how mission-driven finance can drive systemic change. With over USD 180 million (~INR 1,542 crore) raised in equity and debt so far, Varthana is ready to scale and empower the next gen through education and clean energy.