Student loan provider Avanse Financial looks to raise $250 million in private round after shelving IPO
The new tour will be largely secondary and after the capital infusion by Kedaara Capital, the company will contain a small primary component (as it is activated well ( La200 Crore), Mubadala Investment Company ( LaAlpha Investment Company LLC, a 900 Crore subsidiary, Avendus PE Investment Consultants PVT Ltd ( La100 Crore, Avendus Future Leaders Fund II) and the internal accruals in FY24.
Public offering shelves
These people said that the company, which opened draft documents for the first public offering with Sebı last July, will postpone its public offering in favor of collecting private donations. Other investors in the company include International Finance Corporation (IFC) and Warburg Pincus.
Avanse on 31 July 2024, La3,500 CRORE RINGS La1,000 Crore and an offer that existing investors will sell stocks La2,500 crore. He received Sebi’s approval on October 24th.
One of the people mentioned above and who do not want to be named specially, “The company’s public explanation window October (2025). Mint Warburg and avanse question while avoiding commenting.
Indian companies after breaking a record LaIn 2024, 1.69 trillion over the public offering seems to soften between variable market conditions in 2025.
The main panel segment, once full of enthusiastic bidder owners, now sees warm interest, repressed subscription levels and sharply lower list gains. A Mint The analysis revealed that only 19.2% of the motherboard public offers were exaggerated 80 times or more, and 38.5% were exaggerated 1-10 times.
While the median listing gains for the main panel public offering fell only to 8%, SME public offers saw a sharper decrease by up to 4.6% – a crying away from 17.3%and 39.3%in 2024.
Second largest provider
Avanse provides educational financing for educational institutions, including international and domestic student loans and infrastructure loans. A hybrid branch network uses loans through educational consultants and digital channels.
Two NBFCs dominate the overseas education loan market. As of December 31, 2023, HDFC Credila Financial Services had 62% of the market, while 24% of Avanse had a 24% share. Other important NBFCs in space are Auxilo Finserve, Incred Finance, Prodigy Finance and MPower.
Avanse was also the second NBFC to offer educational loans that plan to open to the public after Credila supported by Chryscapital and EQT. Credila, updated draft documents last month La5,000 crore public offering.
“Credila’s public offering would serve as a good measure of where the market stands in an educational -oriented NBFC.” “Avanse’nin a special round to manage a banker appointment and first talks began to manage.”
According to Avanse’s draft IPO papers, the AUM rose to 65.86%. La13.303 FY24 La8,646 Crore in FY23. Total income has grown La1.729 crore in FY24, net profit increased La342 Crore. For comparison, the company sent La990 CRORE, Operating Income La157 Crore in FY23.
The majority of AUM came from overseas training loans with the growth in the segment directed by markets such as the US (48.30%of the overseas book), the UK (23.78%) and Canada (12.58%).
Avanse has given loans to 1,585 universities and colleges registered in 49 countries. As of December 31, 2024, it mainly finances the science, technology, engineering and mathematics (STEM) courses that make up 72.13% of the overseas education credit portfolio.
Niche but growing market
Overseas educational financing is a niche market in India, which is largely financed by NBFCs specialized NBFCs. It is growing thanks to the increasing number of students who choose to maintain higher education abroad. Care Edge ratings, Avanse’nin one of the biggest utilitors of this change, market share, and maintain the leadership position, he said.
The Credit Rating Agency said the company has increased a established presence and profitability and is ready to collect funds at competitive rates and increase operational efficiency. Company released activity income in FY25 La2,350.8 Crore and Snow La504 Crore.
In addition, CARE, the enterprise, product and geographical concentration, moderate portfolio spices and unsecured loans segment in the nature of the nature of the risk of existing risks, he added.
While the company receives a large part of its income from the first four target countries, it gradually varies for educational institutions and loans for students in India to reduce seasonality. The report also started to offer loans to Indian students, especially for uppering and test preparation.
In India, Education Market – Domensic and abroad – LaAccording to a Crisil report published last year, 18.5-19 trillion MY24. Crisil expects India’s overseas education market to be behind the domestic market. It estimates the growth of the total market at a rate of 12-13% annually and 29 fiscal years. La24 trillion size.
