Varthana, a Bengaluru-based startup that provides loans and support to affordable private schools in India, said it will receive a $15 million loan from an American financial organisation.
“An American financial organisation has agreed to sanction $15 million loan to an Indian education startup to expand the access to quality education by providing critical financing to schools that serve low-income students in India,” according to a PTI report.
The financing will help Bengaluru-based Varthana to reach more schools by meeting its need for long-term capital that is unavailable in the Indian market, US International Development Finance Corporation (DFC) said in a statement.
The DFC, America’s Development Bank, said that the financing will be especially critical as schools work to adapt to and recover from disruptions caused by the coronavirus pandemic.
In addition to providing timely loans, Varthana has been helping schools implement digital learning tools and teaching methods so that students can continue their education remotely throughout the pandemic, it said.
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, particularly among low-income populations across the country.
India’s economy has grown rapidly over the last several decades, but more investment in education will be required to keep pace with this growth and extend its benefits across a broader segment of the Indian society, the DFC said.
Low-fee private schools have stepped in to provide low- and middle-income families access to quality, affordable education.
However, these schools need better access to financing in order to grow and improve, it said.
DFC CEO Adam Boehler said this will help low-income students in India access quality education so they can learn, thrive and give back to their communities. “Varthana is a testament to the impact that early-stage ventures can deliver when given the opportunity to scale their innovative approaches,” he said.
DFC’s willingness to provide funding in the midst of this crisis truly demonstrates their commitment to support the education sector when it needs the most, and for that we are very grateful, said Varthana CEO Hardgrave.
Varthana provides loans and support to affordable private schools in India with the goal of improving access to quality education to India’s low-income and emerging middle class families.
Varthana partners with education entrepreneurs who have a sense of urgency about improving access to quality education in low-income communities. These entrepreneurs are usually (not always) ex-educators themselves, who have spent time teaching children in the neighborhood and have then slowly expanded to start a school. They are driven by their mission to provide a robust education, often far superior to the government alternatives.
