Auxilo Finserve raises INR 279 crore in equity funding, led by LeapFrog Investments, to expand its education financing initiatives and enhance student access to higher education.

Information on the Target

Auxilo Finserve is a prominent non-banking financial company (NBFC) in India, focusing on education financing. The company is embarking on a new investment round, aiming to raise INR 279 crore, significantly enhancing its student lending capabilities and the infrastructure necessary for quality education. LeapFrog Investments, a profit-with-purpose investment firm, is set to contribute US$30 million through its investment subsidiary, Jade Inclusion Ltd. This funding round will also include contributions from existing investors Trifecta Leaders Fund-I and Xponentia Opportunities Fund-II.

Industry Overview in India

The pursuit of higher education in India has become increasingly challenging due to rising tuition fees and the associated costs of accommodation and academic materials. This financial barrier disproportionately affects students from low- and middle-income households, making the aspirational goal of obtaining advanced degrees difficult to achieve. Auxilo Finserve addresses these challenges through an innovative underwriting model that evaluates students' academic performance, test scores, and their chosen fields of study to assess future employability potential. This model allows the company to offer merit-based financial solutions to a diverse array of students, facilitating their access to postgraduate qualifications from leading global universities.

India boasts a rich tradition of students pursuing higher education at esteemed international institutions, especially in fields like STEM, which has given rise to numerous high-performing companies in IT, biotechnology, artificial intelligence, and manufacturing. The Indian diaspora plays a crucial role in this ecosystem, contributing approximately US$