VARTHANA SUCCESSFULLY RAISES SERIES C EQUITY, LED BY CHRYSCAPITAL AND EXISTING INVESTORS: ELEVAR EQUITY, LGT, OMIDYAR NETWORK AND KAIZEN PRIVATE EQUITY
Varthana, (trade name for Thirumeni Finance Private Limited), a Bengaluru-based non-banking finance company (NBFC) which specializes in providing debt financing and support to affordable private schools, has successfully closed a round of over Rs 350 crores ($55 million) through a combination of primary raise and secondary stake sales by early stage investors. The round was led by ChrysCapital, one of India’s leading private equity firms. Existing investors, Elevar Equity, LGT, Omidyar Network and Kaizen Private Equity also participated in the round, which will help fund the Company’s ongoing growth. Kotak Investment Banking was the exclusive financial advisor to Varthana for the transaction.
Varthana provides loans, primarily to private schools catering to students from low income households (Affordable Private Schools), allowing schools to expand or improve their infrastructure and also invest in solutions that help improve student learning outcomes. Set up by Brajesh Mishra and Steve Hardgrave in 2013, Varthana supports more than 3,500 schools with 84,000 teachers and 2.5 million students.
Commenting on the development, Varthana Founders Steve Hardgrave (CEO) and Brajesh Mishra (COO) said, “We are very excited to welcome ChrysCapital to our amazing group of investors. Their proven experience in helping companies grow to new heights will help us build on our early progress. We are humbled that they are as convinced as we are about Varthana’s potential to have a significant, positive impact on the Indian education ecosystem.”
Commenting on the investment, Ashish Agrawal, Director, ChrysCapital said “ChrysCapital is delighted to partner with Varthana in its quest to improve the education facilities in India through financing and advisory services. ChrysCapital believes that Varthana is well poised to create a dominant platform in a niche segment given a very passionate set of entrepreneurs along with a deep network, excellent customer relationships and a committed workforce.”
About Thirumeni Finance Private Limited:
Thirumeni Finance Private Limited provides loans and support to affordable private schools in India. The company offers secured and unsecured project and infrastructure loans, and connects schools with resources that help them serve more students. It extends support for the purchase/development of computers, printers, and other related hardware; benches, tables, chairs, and other furniture; didactic materials and/or learning solutions; library books; laboratory equipment; construction of additional classrooms/infrastructure; renovation; smart classrooms; playground and play equipment; and new or used school buses. The company was incorporated in 2013 and is based in Bengaluru, India.
About ChrysCapital Advisors:
Founded in 1999, ChrysCapital is one of the largest and most established India-focused private equity firms with over $3 billion AUM across 7 funds. Since inception the firm has made 80 investments across business services, financial services, healthcare and consumer sector. ChrysCapital is one of the most active private equity investor in financial services having done 19 investments in the space. These include Shriram Transport Finance, Mahindra Finance, Au Small Finance Bank, Hero FinCorp, Magma Fincorp, Axis Bank, City Union Bank and National Stock Exchange. ChrysCapital has realized over $5 billion from 65 full exits and several partial exits. The firm’s LP base includes sovereign wealth funds, university endowments, pension funds, global fund-of-funds, global insurance companies and family offices, amongst others. Several ChrysCapital funds are ranked in the top decile of global private equity funds of similar vintage.
To learn more about ChrysCapital, please visit: www.chryscapital.com
About Elevar Equity:
Elevar Equity has been at the forefront of impact investing since 2006. Led by an entrepreneurial emerging markets team, Elevar seeks to connect the economic resilience and vibrancy of low income communities with capital markets. To address issues of access and inequity, Elevar invests early growth capital in entrepreneurs and businesses that demonstrate a direct correlation between high impact and returns. The Elevar Method of investing has democratized essential products and services for over 30 million low income households in India and Latin America, and catalyzed billions of dollars of capital into 40+ companies.
To learn more about Elevar Equity, please visit: http://elevarequity.com/
About LGT Impact:
LGT Impact is a private equity impact investor targeting both attractive financial returns and measurable, positive impact. LGT Impact aims to improve the quality of life of under-served people and protect the environment through intentionally impactful and commercially attractive investments. Focus sectors include health, education, financial inclusion, environmental services, energy, affordable housing and consumer goods. Headquartered in London and Zurich with local investment teams in Brazil, East Africa, India and the UK, LGT Impact manages a global portfolio of impact investments as well as the Impact Ventures UK fund.
LGT Impact is the impact investing arm of LGT – the world’s largest privately owned Private Banking and Asset Management group with over USD 200 billion AuM as of December 31st 2017.
To learn more about LGT Impact, please visit: www.lgtimpact.com
About Omidyar Network:
Omidyar Network is a philanthropic investment firm dedicated to harnessing the power of markets to create opportunity for people to improve their lives. Established in 2004 by eBay founder Pierre Omidyar and his wife Pam, the organization invests in and helps scale innovative organizations to catalyze economic and social change. Omidyar Network has committed more than $947 million to for-profit companies and non-profit organizations that foster economic advancement and encourage individual participation across multiple initiatives, including Consumer Internet & Mobile, Education, Financial Inclusion, Governance & Citizen Engagement, and Property Rights.
To learn more about Omidyar Network, visit www.omidyar.com and follow on Twitter @omidyarnetwork #PositiveReturns.
About Kaizen Private Equity:
Kaizen Private Equity is Asia’s first private equity fund focused on Human Capital Transformation. As a deeply sector-focused and highly thematic investor, Kaizen brings a unique ability to help create strong, well-differentiated companies through the right alignment of ideas, global networks, strategy and capital flows. The firm believes that companies that disrupt the education status quo in these markets by delivering critical outcomes at scale through innovative business models, or through unique technologies and technology-enabled services, will become regional and global leaders. Kaizen’s presence in Mumbai, Sri Lanka, Singapore, Philippines, uniquely positions the firm to identify opportunities all over Asia, and accelerate our companies’ growth.
To learn more about Kaizen Private Equity, please visit: www.kaizenpe.com