NBFC Avanse to Secure Investment from Mubadala & Avendus

Recently, Mubadala Investment Company, headquartered in Abu Dhabi, and Avendus Future Leaders Fund II have jointly invested ₹1,100 crores as primary capital in Avanse Financial Services, an NBFC specializing in education. This investment is aimed at strengthening Avanse's position in the dynamic education financing sector by improving customer experiences and achieving sustainable growth, as per a company statement. Avanse Financial Services focuses on providing loans to Indian students pursuing higher education both in India and abroad. The company also offers financial assistance to educational institutions in India for their expansion and operational requirements. As of December 2023, the company's assets under management totaled ₹12,147 crores.

Amit Gainda, Managing Director and CEO of Avanse Financial Services Ltd. noted that the growth capital would help enhance the brand, integrate digital solutions, and innovate to broaden the product range, all while delivering greater value to stakeholders. He emphasized the company's dedication to helping students achieve their academic aspirations through customer-centric and result-oriented approaches.

Nomura Financial Advisory and Securities (India) Pvt Ltd acted as the financial advisor to the company, while AZB & Partners represented Avanse Financial Services Ltd. , and Warburg Pincus LLC served as legal counsel. Khaitan & Co. and Latham & Watkins LLP provided legal counsel to Mubadala, with JSA representing Avendus Future Leaders Fund II.

Notably, Mubadala has also been actively diversifying its portfolio in Asia, including an undisclosed investment in Manipal Health Enterprises earlier this year. The fund aims to significantly increase its investments in Asia by 2030. Additionally, Mubadala and BlackRock Real Assets announced an investment of USD 525 million in Tata Power Renewables in May 2023.