Auxilo Finserve Private Limited a leading non-banking finance company (NBFC) focused on providing education finance in India, has announced that it has raised ₹ 470 crores as primary equity capital in its recent fundraising round. The capital infusion has been led by Tata Capital Growth Fund II, Trifecta Leaders Fund – I, and Xponentia Opportunities Fund – II, along with existing shareholder ICICI Bank Limited. The transaction closure is subject to necessary regulatory approvals.
Auxilo Finserve, founded in 2017, provides loans to students for pursuing education in India or Overseas and loans to educational institutions for their infrastructure and working capital needs. The company has funded the aspirations of 7,500+ students across more than 900 Universities in over 25 countries. It has also provided finance to 150+ educational institutes for their infrastructure expansion and working capital requirements.
Neeraj Saxena, MD & CEO of Auxilo Finserve, has expressed his excitement about the company’s recent fundraising exercise, stating that, “The capital infusion will enable the company to fuel its growth aspirations by expanding its loan base, broadening its product offerings, and providing innovative financial solutions to its customers.” He further cited that the investors’ keen interest in the education finance market, which is a highly specialized and niche industry segment, reaffirms the sector’s attractiveness and the market’s confidence in its potential, business model, and growth trajectory.
“With a promising track record and the agility of a young and dynamic organization, Auxilo stands out in the niche and underpenetrated space of education finance for students going abroad. With this capital raise, backing of esteemed promoters and proficient management, we are perfectly positioned to seize the significant growth opportunities in this space and empower students to pursue their international education aspirations,” said Akhil Awasthi, Managing Partner – Tata Capital Growth Fund.
The capital infusion will enable Auxilo to broaden its product offerings and enhance its technological capabilities to meet evolving customer needs. “The company’s strong management team, extensive use of technology in underwriting and collections, and infusion of significant equity financing will provide a solid foundation for Auxilo’s continued growth in the large and growing Education Loan market,” said Sandeep Bapat, Partner, Trifecta Growth Equity.
The Company’s Assets under Management (AUM) has grown at 51% CAGR (Compound Annual Growth Rate) during FY20-23 and stands at ₹ 1,691 Crores as on 31-Mar-2023. Auxilo operates out of seven key cities in India, with an employee strength of over 250 employees.
“We are excited to support Auxilo’s mission – helping smart Indian students to fulfil their aspiration of studying at their dream colleges around the world. Our investment in Auxilo fits with Xponentia team’s track record of being in the vanguard of financial services investment opportunities,” said P R Srinivasan, Founder & Partner, Xponentia Capital Partners.
Recently, the company in association with National Skill Development Corporation (NSDC) has launched its new offering for students pursuing job-oriented courses for skilling, upskilling, and reskilling.
The funds raised will empower Auxilo to expand its lending capabilities and strengthen its position as a key player in the NBFC sector to create sustainable value for its stakeholders in the coming years. Dhaval Madlani, Head of Financial Services, Investec India, the exclusive financial advisor for this transaction, was quoted saying, “The current investment in Auxilo is a testament to the fact that the company is well placed to capitalize on the education finance opportunity. We are proud to have been a part of this transaction, which will benefit all stakeholders and provide finance at affordable costs, with its best-in-class promoters, management, and investors.”
Vendor Due Diligence was performed by Alvarez & Marsal, a global professional services firm. Legal Due Diligence was performed by Trilegal, a leading law firm that was also the exclusive legal advisor of the Company for this fund-raising round.