Avanse Financial Services raises Rs 390 crore from Warburg Pincus, IFC

22 Sep 2022 , 08:47 AM

An education-focused non-bank lender, Avanse Financial Services, received roughly Rs390 crores from its current shareholders, Warburg Pincus, and International Finance Corporation (IFC).

A rights issue of shares in proportion to the holdings was used to fund the investment. Through its affiliate Olive Vine Investment, the private equity firm Warburg Pincus owns 80% of Avanse, with IFC holding the other 20%.

Avanse’s net worth increased to approximately Rs1,450 crore as a result of this capital inflow.

At the end of March, it had Rs4,836 crore in assets under management, representing a 22% compound annual growth over the previous four years.

Avanse would be able to improve its capital adequacy ratio and balance sheet with the raised equity.

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