Startup Story Team
In a promising development for India’s education sector, Bengaluru-based NBFC firm Varthana has raised ₹159 crore in debt funding. This fresh capital is set to accelerate the company’s mission of supporting affordable private schools and enabling access to quality education for students from low-income families across the country.
Who is Varthana?
Founded in 2013, Varthana operates as a non-banking financial company (NBFC) with a specific focus: empowering low-cost private schools. Over the years, the company has carved a niche for itself by providing loans to private schools that often struggle with access to traditional credit sources.
By bridging this financing gap, Varthana helps schools invest in infrastructure, hire qualified teachers, implement digital learning tools, and meet the ever-evolving demands of modern education.
Details of the Funding Round:
The ₹159 crore debt funding was raised from a mix of financial institutions and impact investors. Although the names of the participating investors were not disclosed, the funding reflects continued investor confidence in Varthana’s social-impact-driven business model.
This infusion will be strategically used to expand Varthana’s loan book, strengthen its presence across key Indian states, and ultimately reach more than 4,000 affordable private schools serving underprivileged communities.
Why This Matters:
India has a vast network of low-cost private schools, especially in Tier 2 and Tier 3 cities, which cater to families looking for better education alternatives to government schools. However, many of these institutions face significant challenges when it comes to upgrading facilities or adopting new teaching technologies due to a lack of funding.
By supporting such schools, Varthana plays a critical role in enhancing the quality of grassroots education and enabling millions of students to dream bigger.
Looking Ahead: Impact-Driven Growth.
With this new round of capital, Varthana aims to double down on its core mission. The company also plans to diversify its offerings by introducing new financing solutions tailored for school improvements, teacher training, and even student scholarships in the future.
As India’s education landscape continues to evolve, Varthana’s model could become a template for sustainable, inclusive growth in the sector.
