Introduction
Education strongly influences India’s progress, but many schools in rural areas find it hard to provide good education. A recent ASER study of over 34,000 rural youths across 26 states and 28 districts showed that 42% of teens aged 14 to 18 can’t read basic English well, while more than half struggle with simple division. These numbers show we need to improve the education system quickly to ensure every student learns the basics.
To address this, the government and non-banking financial companies (NBFCs) have started to take action to boost education across the country. Programs like the PM SHRI Scheme, which began in 2022, aim to improve school education, with 14,500 schools already using the policy. Along with these efforts, NBFCs like Varthana have played a big part in helping this change in areas that need more support.
By 2024, NBFCs have had a huge effect on the education field. Their Assets Under Management (AUM) went up by more than 70%, demonstrating their growing influence.
A 2024 report in The Hindu Business Line shows that NBFCs have funded over 9,500 affordable private schools in the last ten years and given more than 15,000 loans to help schools grow and improve their facilities. These actions boost school resources and help raise education standards in areas that lack good schools.
Varthana’s Journey: A Base for Growth
Varthana started in Bengaluru in 2013 and has become a major player in India’s education sector. The organization works in 15 states and 40 cities to make affordable schooling available to every child who hasn’t had the chance to learn in life in this country.
The core values of Varthana center on recognizing and addressing the challenges that school leaders face daily in providing quality education in some of the most rural parts of India. Since financial support is hard to come by for such budget private schools, Varthana is dedicated to helping them unlock their school’s full potential, enabling them to compete effectively with neighboring schools. These institutions also boost students toward reaching top academic heights and pursuing the careers they’ve always wanted, leading them to a brighter future.
Broadening Horizons: Unleashing Talent Throughout India
A. Geographical Expansion
“We believe education transforms people, and therefore it is needed to unlock that potential,” is what Steve Hardgrave, co-founder and CEO of Varthana says. This is what the organization takes to heart, pushing forward with its vision for providing school enrollment as financial support so that students have the power to reach their full potential.
Varthana has influenced the lives of more than 5 million students thus far, and by 2025, it hopes to have reached 10 million. In order to provide hope and opportunity to communities who most need it, the expansion focuses attention on places where the educational system is lacking. Every school Varthana supports, and every child they empower, adds another thread to the fabric of change that is shaping the future of our nation.
In addition to traditional schooling, Varthana champions technical and vocational training by partnering with over 750 institutions and reaching more than 11,000 pin codes across India. The goal is to ensure that every student, regardless of background, has the opportunity to upskill and realize their ambitions.
B. Reaching New Communities
Due to the COVID-19 pandemic, India has had one of the world’s longest school closures. It closed schools too early and reopened them too late, causing immense interruption in education from both teacher and student perspectives. Many families, particularly in rural areas, struggled to afford the smartphones and internet access necessary for online education, especially as some had relocated to rural areas for work. This created a widening divide between urban and rural communities, where digital learning tools remained out of reach for many.
“We believe education is transformative and essential for unlocking individual potential,” says Steve Hardgrave
To bridge this educational gap, Varthana launched the Unlock Schools initiative, which focused on schools serving budget-conscious families who couldn’t afford workbooks during the school closures. The program provided printed materials and videos in math and English to schools, ensuring that families with students in grades 1-8 could continue learning. Its mission was to keep students engaged, prepare them for their return to school, and help bridge the learning gaps caused by the pandemic.
Through the initiative, Varthana reached around 1,000 schools across India, distributing 1,400 workbooks each month and benefiting nearly 300,000 students.
Key features of the program included:
- Free Education: Providing resources at no cost to ensure every child has access to learning materials.
- Printed Materials: Hard copy resources were delivered directly to schools, making learning accessible to students without internet access.
- Grade-Specific Educational Resources: The curriculum provided age-appropriate learning content for students in grades 1 through 8, with a focus on crucial subjects such as math and English.
- Improved Literacy and Numeracy: Emphasis on strengthening foundational skills in reading, writing, and mathematics.
- Support for Fee Collection: By offering engaging content, the initiative helped schools boost fee collection.
The Unlock Schools initiative successfully created a structured and supportive learning environment, benefiting both students and parents during challenging times.
Source: CSD India
C. Improving Teaching Quality
Skilled and well-trained teachers are one step toward providing quality education. Surprisingly, the high dropout rates, particularly in primary school, are largely due to a lack of skilled teachers. Effective learning outcomes will only be accomplished when teachers in both government and private schools have the necessary expertise to create an interactive, motivating atmosphere.
Source: UDISE+
A 2021 report on private schools in India highlighted some key challenges in teacher recruitment:
- Informal Recruitment Practices: While a few schools conduct formal interviews, many still rely on personal connections, family ties, or local pressures.
- Preference for Family References: Approximately 41% of teachers are hired through family or community recommendations, often prioritizing relationships over qualifications.
- Impact on Education Quality: This informal recruitment can limit students’ access to skilled educators, impacting personalized learning and effective teaching.
To address these gaps, Varthana launched a targeted teacher certification program to equip educators with the skills needed for modern classrooms. This program focuses on:
- Proficiency: Training teachers to adapt to online learning, especially those with limited technology backgrounds.
- Effective Curriculum Design: Equipping educators with tools to create engaging and impactful lessons.
- Assessment Techniques: Introducing methods to track and support student progress effectively.
Through these efforts, Varthana supports teachers and students in underserved areas, creating an educational system that offers greater equity and opportunity.
D. Scaling up Impact
“The low-budget schools in which we invest are counting on inclusive financial services to get back on the growth path following the unprecedented challenges faced during the pandemic,” says Steve, thanking our investors – BlueOrchard Finance, Triodos Investment Management, Chrys Capital – for their continued support. With this backing, Varthana is committed to helping schools in semi-urban and rural areas develop essential 21st century infrastructure, construct new facilities, and purchase much-needed equipment.
“We have consistently worked to bridge the access gap in quality education for low- and middle-income families by financially empowering budget private schools across India. With this investment, we aspire to shape a brighter future for young minds across the nation,” says the founder with a big smile.
With funding milestones such as $10 million from BlueOrchard Finance and $14 million from Blue Earth Capital, Varthana’s growth strategy emphasizes collaboration with educators, policymakers, and investors. Overall, Varthana’s total capital raised to date—combining equity and debt funding—exceeds ₹1,500 crore (approximately $180 million), underscoring its commitment to expanding access to quality education in underserved areas.
The Road Ahead
Beyond supporting primary and secondary schools, Varthana is expanding its impact into the student loan and college infrastructure sectors, helping students pursue higher education and assisting institutions in expanding their reach. By addressing enrollment challenges and enabling infrastructure upgrades, Varthana ensures that students can transition smoothly into advanced education or skilled careers, fulfilling their potential without financial barriers.
Together, Varthana and its partners are creating a future where learning is a pathway to personal growth, dignity, and progress, bringing quality education to every corner of India.
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