Varthana, the education-focused fintech startup, has secured $14 million (approximately INR 116 Crores) in funding from its existing investor, Blue Earth Capital. This infusion of capital is part of a follow-up investment by Blue Earth, as Varthana gears up for its upcoming Series D round. Notably, Blue Earth initially invested $8 million in Varthana back in 2019.
Aiming for Educational Transformation
Varthana, founded in 2013 by Steve Hardgrave and Brajesh Mishra, operates as an education-focused non-banking finance company. The startup provides loans to students and low-budget private schools, enabling them to access digital learning tools. The freshly raised funds are earmarked to expand financial support for a broader network of affordable private schools across India.
In a statement, Varthana’s CEO, Steve Hardgrave, expressed his enthusiasm, stating, “With this new investment, our commitment to transforming education in India will strengthen further… With this investment, we aim to inspire more young minds in India for a better tomorrow.”
Current Presence and Future Vision
Varthana currently boasts a presence in 16 states through 40 branches. Beyond supporting school students, it also has its sights set on aiding college attendees, those in technical training or short-term courses, and postgraduate students through its credit services. The startup aims to provide loans to over 1 crore students in the country by 2025.
Since its inception, Varthana claims to have served over 9,500 private schools, facilitating more than 15,000 loans for school development and renovation in cities and towns of all sizes.
Continued Financial Backing
This recent funding follows Varthana’s previous financial boosts. In September of last year, the startup secured $2.5 million in debt funding from Symbiotics Investments via education-focused social bonds. The funds were earmarked to make private schools in rural and suburban areas more affordable by providing credit for equipment purchases and construction.
Earlier in January 2023, Varthana received $7 million in funding from MicroVest, specifically to scale up credit facilities for low-budget private schools.
In summary, Varthana’s strategic funding from Blue Earth Capital aligns with its vision to reshape the educational landscape in India. With a strong track record and a commitment to fostering educational access, Varthana is poised for significant contributions to the sector.
