Mumbai: Avanse Financial Services Ltd, India’s new age, education focused NBFC achieved an AUM of ~₹3,103 Cr. during FY21 with 52K+ live customers. The organization witnessed a significant growth in its Profit After Tax (PAT) as compared to FY20. PAT for FY21 stands at ~₹38 Cr. Total loan disbursed during this financial year is ~₹976 Cr. contributing towards a net worth of ~₹942 Cr. The digitally agile company focused on fulfilling education aspirations of deserving Indian students and performed significantly amidst various challenges posed by the outbreak of the pandemic.
Financial Year 2021 was a challenging phase due to the outbreak and subsequent impact of COVID-19. The global economy, including India, witnessed an unprecedented health and economic crisis due to this pandemic which affected lives and livelihood of people at large. The education sector too experienced significant disruptions; traveling abroad to pursue education was halted, and online education took prominence. In response to these challenging times, Avanse had been committed towards helping students continue their education smoothly. It introduced enhanced education financial solutions, an innovative product feature which allowed students to opt for any type of instruction delivery module, be it hybrid or in-person sessions. Hence, students could start their courses online and then smoothly transition to in-person sessions as and when the travel restrictions are suspended.
Commenting on the performance and the year gone by, Mr. Amit Gainda, CEO, Avanse Financial Services said, “The education sector witnessed significant transformation that accelerated digital interventions at a pace never witnessed before. Amidst the uncertainties, Avanse Financial Services was driven to implement innovative solutions to power sectorial advancements. With our student centric products, we were able to aid 52K+ live customers with the necessary financial assistance and offered them a hassle-free experience throughout.”
He further added, “The year gone by was an extremely challenging year. It created a volatile, uncertain, complex and ambiguous business environment. Despite all the hindrances, Avanse Financial Services demonstrated “Resilience” in terms of ensuring smooth business continuity even amidst the most difficult phase. Though it was a tough year for most of the sectors, yet education has been one of initial sectors to get back on track. Education is an important aspect of the Indian culture and thus, education financing is a multi-decade secular growth opportunity in India. This country is a land full of opportunities. With the help of its favorable demographics, India is capable of achieving a sustained growth rate for a prolonged period of time. The primary reasons behind the fast recovery of the economy are: (a) Efforts of the Indian Government to revive the economy by introducing several policy tools, (b) Positive news of the drug to fight the pandemic, and (c) RBI’s stimulus packages. These policies cumulatively gave new hope to build a resilient Indian economy post-COVID crisis.”
A diversified business model enabled the company to deliver its best even at the time of disruption. Avanse raised a total sum of ₹250 Cr. under government initiatives. Of this, ₹100 Cr. was raised through the Targeted Long-Term Repo Operation (TLTRO) window 2.0 by RBI from leading public sector banks and ₹150 Cr. under the Partial Credit Guarantee (PCG) Scheme. In addition to this, Avanse also raised ~$15 million from World Business Capital Inc. and this was backed by guarantee from US International Development Finance Corporation via External Commercial Borrowing (ECB) route. The funds raised were utilized to help more deserving Indian students fulfil their educational aspirations and towards the development of the overall education ecosystem.
Avanse has fulfilled educational dreams of ~1.2 lacs academic aspirants across ~12,000 institutes and courses in ~50 countries. Avanse has also provided growth and working capital to ~1K educational institutes catering to over ~5-6 lacs students. For more information, please visit www.avanse.com.