• The current round of investment will also see participation from existing investors Trifecta Leaders Fund-I and Xponentia Opportunities Fund-II

Mumbai: Auxilo Finserve, the leading education-focused NBFC, is raising INR 279 Cr in a fresh round of equity funding to expand its student lending portfolio and enable better infrastructure for quality education. LeapFrog Investments (“LeapFrog”), the profit with purpose investment firm, is investing US$30 million in the current round through its investment vehicle Jade Inclusion Ltd. This round will also see participation from existing investors Trifecta Leaders Fund-I and Xponentia Opportunities Fund-II.

Rising tuition fees and the increasing cost of accommodation and academic necessities, mean the aspiration of pursuing higher education is often unattainable for many Indian students, especially those from low- and middle-income households. Auxilo’s innovative model of underwriting uses student academics, test scores, country of study and degree choice to predict future employability, allowing it to offer merit-based finance to an increasingly broad range of students seeking to acquire master’s degrees and other post-graduate qualifications at the world’s top universities.

Indian students have a long tradition of acquiring post-graduate knowledge and skills at a range of top-tier international universities, leading to the development of world-class Indian STEM companies in IT, biotech, AI and manufacturing. India’s high-achieving diaspora contributes to the US$111 billion in annual remittances (the largest globally), which is re-injected into the domestic economy each year. Many return to India to found and operate the country’s largest companies, or work in key enablers like venture capital, private equity, banking and advisory firms, which together support the third largest startup ecosystem in the world, collectively valued at US$350 billion in 2023.

“LeapFrog’s commitment to social impact aligns perfectly with our vision of empowering individuals through education. This investment, along with continued support from our existing investors, will enhance our ability to support students in achieving their academic dreams,” said Neeraj Saxena, MD and CEO at Auxilo.  

The new round of capital infusion will be utilised to expand customer reach, enhance student funding, incorporate technological infrastructure across business processes, and boost the company’s institutional lending segment.

Stewart Langdon, Partner and Co-Head of Asia Financial Services at LeapFrog Investments, said: “LeapFrog is dedicated to supporting springboards into prosperity across a range of sectors in India – from finance and insurance, to healthcare and clean technologies. With Auxilo, we see a unique opportunity to enable the best and brightest to pursue their dreams of higher education and training, no matter their financial background. We look forward to working with Neeraj and the team.”

Auxilo’s Loans and advances have grown at 75% CAGR (Compound Annual Growth Rate) during FY21-24 and stand at INR 2,878 crore as of March 31, 2024. Auxilo’s rapid growth has been accompanied by rigorous risk management, maintaining excellent asset quality, while creating value for all stakeholders. Auxilo’s 350 employees operate out of seven branch offices, offering loans to customers across India.

Auxilo has entered into definitive agreements with the investors and the closing of the transaction will happen in the near future.

Founded in 2017, Auxilo Finserve is promoted by Akash Bhanshali of ELME Advisors LLP and co-invested by Balrampur Chini Mills Ltd. Auxilo Finserve provides loans to students for pursuing education in India or overseas and also to educational institutions for their infrastructure and working capital requirements. The company’s mission is to enable students to pursue their dreams of quality education, domestically and globally, and also to contribute significantly to improve and uplift the nation’s education infrastructure through its innovative financial solutions that leverage technology to provide seamless, hassle-free, and fair financial access to all its customers. This mission has been propelled by purpose-driven investors such as ICICI Bank Ltd, Tata Capital Growth Fund II, Trifecta Leaders Fund – I, and Xponentia Opportunities Fund – II. To date, the company has provided education loans to over 12,000 aspirational students, across more than 1,100 universities and education institutes in over 30 countries. The company has also provided finance to over 170 educational institutes for their infrastructure expansion and working capital requirements.

For more information, visit www.auxilo.com.

LeapFrog invests in healthcare, financial services and climate solutions businesses in high-growth global markets. Its companies deliver distinctive impact and robust returns, growing revenues on average 23% a year. LeapFrog companies now reach 537 million people in 37 countries. The firm has raised billions of dollars from global institutional investors, including a recent $500m commitment by Temasek to LeapFrog and its growth equity funds. LeapFrog has twice been ranked by Fortune as one of the top Companies to Change the World and was named inaugural Pioneer in Impact by the FT and IFC at the Transformational Business Awards.

For more information, go to: www.leapfroginvest.com.

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Auxilo Media Contact:

Flora Bhandari: +91 80824 33407

Manish Joshi: +91 9967002938

communications@auxilo.com