Auxilo Finserve Pvt. Ltd, a non-banking financial company focussed on the education sector, has raised Rs 37.5 crore ($5.7 million) from sugar manufacturing company Balrampur Chini Mills Ltd.
With this equity capital infusion, Balrampur Chini Mills gets equal shareholding of 50% in the company along with Akash Bhansali, who leads the principal investment unit of Enam Holdings.
Both the investors have made a long-term commitment to invest Rs 175 crore each in the company.
On 15 September 2017, the board of Balrampur Chini Mills had approved a cumulative investment of Rs 175 crore in Auxilo Finserv for financing activities in the education sector. The investment will be made in tranches over five years. It also agreed to invest Rs 37.5 crore in an initial tranche, Balrampur Chini Mills said in a statement.
Auxilo Finserv started operations in October 2017. It provides loans to students for higher studies, both domestic and international, and educational institutes for building infrastructure.
Auxilo Finserve has centres in Mumbai, Hyderabad, Chennai, Delhi, Bangalore and Pune.
NBFCs that are focussed on lending to educational institutions include Chennai-based Shiksha Financial Services India Pvt. Ltd, Delhi-based Indian School Finance Company Pvt. Ltd and Bangalore-based Thirumeni Finance Pvt. Ltd.
In its latest funding round, Shiksha received about Rs 6.7 crore ($1 million) from the Michael & Susan Dell Foundation along with Aspada Investment Company in 2016.
Thirumeni Finance, which operates under the brand name Varthana, raised Rs 92.6 crore ($13.94 million) in Series B round of funding from a clutch of institutional investors.
While Indian School Finance Company is on the road to raise around $25 million (around Rs 160 crore) in equity funding and was in advanced talks with some fund managers.