BlueEarth, ResponsAbility, Franklin Templeton Back Varthana with INR 159 Cr Debt Funding The company plans to deploy the capital towards expanding its network of affordable private schools and integrating solar and renewable energy infrastructure in these institutions.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Education-focused non-banking financial company (NBFC) Varthana Finance has raised INR 159 crore in debt funding from three global impact investors: BlueEarth Capital, ResponsAbility, and Franklin Templeton Alternative Investments (Franklin Templeton AIF). The funds were secured through a mix of external commercial borrowing (ECB) and non-convertible debentures (NCDs).
Switzerland-based BlueEarth Capital contributed INR 69 crore via ECB, while ResponsAbility and Franklin Templeton AIF infused INR 65 crore and INR 25 crore respectively through NCDs.
The company plans to deploy the capital towards expanding its network of affordable private schools and integrating solar and renewable energy infrastructure in these institutions.
"The investment from BlueEarth Capital and Franklin Templeton AIF will strengthen our network of affordable private schools, while the investment from ResponsAbility will support the integration of clean energy solutions by fostering sustainability and long-term resilience in school operations," said Steve Hardgrave, CEO of Varthana Finance.
Founded in 2013 by Steve Hardgrave and Brajesh Mishra, Varthana is headquartered in Bengaluru and operates across 16 states and union territories with a presence in 40 branches.
It provides loans and academic support to small, affordable private schools serving students from low-income families, helping institutions that typically lack access to traditional financing due to their structure as trusts or societies.
In addition to school financing, Varthana also offers education loans for students pursuing college and vocational training. So far, it has supported over 12,000 schools with more than 19,000 loans, driving both infrastructure development and academic improvement across India's underserved regions.
Amy Wang, Head of Private Credit at BlueEarth Capital, noted, "This is our third collaboration with Varthana, with whom we share the belief that inclusive access to quality education is a cornerstone for long-term social and economic progress. We are proud to continue our support of Varthana in its mission."
A spokesperson from Franklin Templeton AIF added, "Varthana's strong track record in bridging India's education gap through innovative financing demonstrates the transformative potential of accessible education."
Nidhi Nathani, Investment Officer at ResponsAbility, emphasised, "Education is the cornerstone of progress and we are happy to support Varthana's mission to democratise access to quality education."
