ISFC eyeing to raise $10-12 million in its 8th funding round

New Delhi: Education sector lender, Indian School Finance Company (ISFC), has announced its 8th fundraising round that aims to garner a total of USD 10 to 12 million. The company’s goal is to strategically bring value from the diversified field with a wider investor base comprising family offices and HNIs to achieve a 50% equity and debt mix.

ISFC has a robust network of 22 branches across 13 states in India and funded more than 5,500 schools so far. All of its previous funding rounds were subscribed by the US-based impact investor Gray Matters Capital (GMC) Inc. During the pandemic and the subsequent lockdown last year, the company had also raised USD 10 million from various investors through equity and debt. The strong support of ISFC’s existing investors and timely intervention ensured the survival and stability of several educational institutes in India during the challenging time.

ISFC’s main focus during the upcoming fiscal year is to proactively drive digital transformation and integration of technology. The current round of equity will also enhance its capital adequacy, thereby diversifying the shareholder base and paving the way for incremental leverage on debt capital.

Mr. Sandeep Wirkhare, MD and CEO, ISFC said, “We are transitioning into a new avatar of ISFC version 2.0. We are taking this investment round as an opportunity to convert ourselves into a full-service, digitally-driven business. ISFC is in a unique position with a strong brand value, large customer base, and well-diversified pan-India distribution and collection network. We simply need to execute our digital transformation and work on linking the whole ecosystem that would give us exponential scale with very little, known, and mitigable risk on our turf.”

He added, “The funding round is only the beginning of an extremely large opportunity. With it, we intend to organize and bring underserved K12 schools from the traditional education system to a futuristic digital content delivery model in the education and skill development space.”

Speaking on the same, Erika Norwood CEO of GMC Inc said, “ISFC is one of our longest-standing flagship investments in education. ISFC has continuously demonstrated its ability to scale operations and successfully serve customers across India year upon year. This model is now being replicated in other countries like Nigeria and Pakistan as well. With the focus on integrated technology across the organization and customer experience, we are very excited to be a part of this new version of ISFC. I believe that if you zoom out to the future and you look back to ask: ‘What has ISFC’s greatest contribution been?’ It will be this moment – the marriage of digital transformation and relationship banking in education finance.”