The deal is part of Mubadala's larger vision of growing its exposure in Asia

Abu Dhabi: Mubadala Investment Company (“Mubadala”), the Abu Dhabi based investment company announced today that it is investing in Avanse Financial Services Ltd. (Avanse), India’s new age, technologically advanced, education-focused non-banking financial company (NBFC). Mubadala led this round of funding through its affiliate Alpha Investment Company LLC with participation from Avendus PE Investment Advisors Private Limited via its fund Avendus Future Leaders Fund II. 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.

This investment marks Mubadala’s first in the financial services sector in India and is part of a plan to double the company’s exposure in Asia by 2030.

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 transformational role in the education financing sector and has fulfilled 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 ~AED 5.5 billion.

“Avanse will continue to enable young generations of Indian students to fulfil their aspirations. We are thrilled to partner with Amit and the management team of Avanse alongside institutions of the caliber of Warburg Pincus, Kedaara Capital and the IFC. We look forward to further enabling the growth of the business”, said Luca Molinari, Head of Asia and Financial Services at Mubadala.

Narendra Ostawal, Managing Director and Head of India, Warburg Pincus, said, “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 Investment Company as Avanse continues to advance its long-term objectives.”    

Commenting on this development, Amit Gainda, Managing Director & CEO, Avanse Financial Services, 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, Warburg Pincus, Kedaara Capital, and International Finance Corporation. 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 as we work towards delivering greater stakeholder value.”

About Avanse Financial Services

Avanse Financial Services Limited is a new-age, technologically advanced, education-focused NBFC on a mission to provide seamless and affordable education financing for every deserving Indian Student. The company provides loans across the following customer needs:

  • Student Loans: Financing solutions designed to cater to the entire education lifecycle of students. 
    • Loan for Higher Education in India
    • Skill Enhancement Loans in India
    • Loan for Higher Education Abroad
  • Institution Loans: Loans for financing the growth and working capital needs of educational institutes in India.

The organisation has fulfilled the educational dreams of ~4 lakh Indian academic aspirants across various countries. The company has also provided growth and working capital to ~2K educational institutes. For more information, please visit www.avanse.com.

About Mubadala Investment Company

Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for the Government of Abu Dhabi. Mubadala’s $276 billion (AED 1015 billion) portfolio spans six continents with interests in multiple sectors and asset classes. It leverages its deep sectoral expertise and long-standing partnerships to drive sustainable growth and profit, while supporting the continued diversification and global integration of the economy of the United Arab Emirates. For more information about Mubadala Investment Company, please visit: www.mubadala.com.

About Warburg Pincus

Warburg Pincus LLC is a leading global growth investor. The firm has more than $83 billion in assets under management. The firm’s active portfolio of more than 260 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Since its founding in 1966, Warburg Pincus has invested more than $116 billion in over 1,000 companies globally across its private equity, real estate, and capital solutions strategies. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com. Follow us on LinkedIn.