Varthana, a leading Non-Banking Financial Company (NBFC) focused on affordable education, has raised ₹159 crore in a fresh debt round from a consortium of global investors through a combination of External Commercial Borrowing (ECB) and Non-Convertible Debentures (NCDs).

The capital has been secured from three marquee investors:

• BlueEarth Capital – ₹69 crore

• ResponsAbility – ₹65 crore

• Franklin Templeton Alternative Investment Fund (AIF) – ₹25 crore

This strategic infusion will enable Varthana to expand its lending support to affordable private schools across India and accelerate the deployment of solar and renewable energy solutions in these educational institutions, thereby addressing both access and sustainability challenges in the sector.

Driving Access and Sustainability in Education

Founded in 2013 by Steve Hardgrave and Brajesh Mishra, Bengaluru-based Varthana offers a comprehensive range of financial solutions tailored to the unique needs of low-cost private schools and students pursuing higher education. Its product suite includes infrastructure loans, teacher training financing, and student loans, aiming to uplift underserved communities through quality education.

“Varthana is pleased to partner with BlueEarth Capital, Franklin Templeton AIF, and ResponsAbility in our efforts to drive impactful change in the education sector and make quality education accessible to all across India,” said Steve Hardgrave, CEO and Co-founder of Varthana.

The funding comes at a time when demand for reliable education financing is rising sharply in Tier II and Tier III cities, where thousands of private schools operate with limited access to capital for growth and modernization.

A Decade of Impact

Over the past 10 years, Varthana has:

• Supported over 12,000 affordable private schools

• Facilitated 19,000+ school loans

• Built a presence across 16 Indian states and union territories

• Operated a 40-branch network serving remote and semi-urban areas

The company had earlier raised $89.5 million from leading global impact investors including the Omidyar Network, helping it strengthen its lending and impact capabilities.

Forward Focus: Clean Energy for Education

With the new funding, Varthana will double down on introducing solar infrastructure in schools, a move that aligns with India’s growing push toward renewable energy and net-zero goals. The clean energy initiative will not only reduce operational costs for schools but also provide students with reliable power for learning, especially in underserved areas.

This multi-pronged approach—combining financial inclusion, sustainable infrastructure, and educational impact—positions Varthana at the forefront of mission-driven finance in India’s education ecosystem.

-By Muskan Dengra