Warburg Pincus to Acquire Avanse, India’s Leading Education Finance Company Mar 16, 2019
Mumbai, March 16, 2019: Warburg Pincus, a leading global private equity firm focused on growth investing, today announced that an affiliate of private equity funds managed by Warburg Pincus LLC has entered into a definitive agreement to acquire an 80% equity stake in Avanse Financial Services Limited (“Avanse”) held by Wadhavan Global Capital group. In addition, as part of the transaction, the Warburg Pincus affiliate plans to infuse INR 3,000 million primary equity capital into Avanse to fund its future growth.
Avanse is a new age, fast growing customer-oriented education focused Non-Bank Finance Company (NBFC). Avanse started its journey in 2013 and in a short span, the company has funded over 15,000 students across 6,000 courses in over 2,000 institutions across India and over 45 countries. Avanse has partnered with 500+ educational counsellors across the country. Avanse has also funded over 300 educational institutions covering over 7 lakh students. The company has assets under management in excess of INR 29 billion.
Mr. Amit Gainda, CEO, Avanse, said “We at Avanse are excited to partner with Warburg Pincus. The education financing market is still evolving and having a long term, committed partner like Warburg Pincus on board, gives us the opportunity to play a decisive role in this fast-growing segment. Since its inception, Avanse has addressed the growing need of education finance for aspiring students and is committed to fulfilling their dreams of greater prospects.”
Mr. Vishal Mahadevia, Managing Director and India Head, Warburg Pincus said “We believe that education is an important priority for India, and specialised lenders, like Avanse, will play a strong role in helping meet aspirations of young Indians. Warburg Pincus has a deep history in backing talented management teams, particularly within financial services and looks forward to working with Amit and the management team to help Avanse realise its full potential. The planned primary capital infusion in Avanse will meaningfully expand the company’s net worth. We expect the company’s stakeholders to welcome the ownership transition to a long term, well capitalized and patient investor.”
The acquisition is subject to the terms of the agreement and is expected
to close later this year post receipt of approvals and completion of other
customary closing conditions. Ernst & Young served as the financial advisor
for the transaction.
About Avanse Financial Services:
Avanse Financial Services Limited is a new age, leading education focused niche NBFC, regulated by Reserve Bank of India. The organisation is part of Wadhawan Global Capital Private Limited (WGC), a diversified financial services group. Avanse is also backed by The International Finance Corporation (IFC), an arm of the World Bank which is key stakeholder with 20% equity stake in the Company. With its new age, flexible and tailored financial solutions, Avanse addresses higher education needs of the Indian youth enabling them to ‘Aspire without Boundaries’. With workforce strength of about 600+ employees across India, Avanse has fulfilled dreams of over 15,000 students across 6,000 courses in over 2,000 institutes across India and over 45 countries. In its B2B business, Avanse provides funding to Educational Institutes for their growth and working capital needs. Avanse has funded ~300 institutes catering to over 7 lakh students. To know more about the company, visit: http://www.avanse.com/.
About Warburg Pincus:
Warburg Pincus LLC is a leading global private equity firm focused on growth investing. The firm has more than $43 billion in private equity assets under management. The firm’s active portfolio of more than 180 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 17 private equity funds, which have invested more than $73 billion in over 855 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore. For more information please visit www.warburgpincus.com.