Mubadala to Invest Rs 11 Billion in India's Avanse Financial Services

Mubadala Investment Company, the sovereign wealth fund of Abu Dhabi, is set to join a consortium investing Rs 11 billion ($132.71 million) into Avanse Financial Services, a leading player in the education loan segment, according to a report by Economic Times, citing sources familiar with the matter.

Alongside Mubadala, other prominent investors participating in this investment include Kotak Pre-IPO Opportunities Fund and Avendus Future Leaders Fund, as reported by the financial daily.

The transaction, once finalized, is expected to place a valuation of Rs 8 billion on Avanse, making it the second-largest domestic private sector non-banking financial company (NBFC) operating in the education loan domain.

Established in 2012, Avanse has reportedly managed assets worth nearly INR 8,000 crore as of December 2022.

Its loan disbursement figures for the first nine months of 2023 stood at approximately INR 4,850 crore, marking a nearly threefold increase compared to the previous year.

Avanse's reach extends globally, having provided financing solutions to over 400,000 students across 4,000 educational institutions and 30,000 courses spanning 50 countries, as outlined in the report.

Source: Zawya