Education focused non banking financial company (NBFC) Varthana Finance has raised around USD 16.5 million (INR 150.78 crore) through a fresh tranche of international debt funding.

The latest round includes a USD 6 million loan from WaterEquity, USD 5 million through non-convertible debentures from Symbiotics, and EUR 5 million in external commercial borrowings from impact investor Triple Jump.

The capital will be primarily used to strengthen Varthana’s lending portfolio for affordable private schools, with a strong emphasis on infrastructure upgrades and access to basic facilities.

A significant portion of the funding from WaterEquity will be deployed towards school improvement loans that integrate water, sanitation, and hygiene infrastructure. These investments are expected to improve learning conditions in schools serving low and middle income communities, particularly in urban and rural regions where access to safe water and sanitation remains limited.

The funding from Triple Jump and Symbiotics will support broader expansion of Varthana’s education lending operations. This includes scaling its presence across geographies, deepening engagement with affordable schools, and providing long term financing that enables institutions to invest in classrooms, sanitation facilities, and other essential infrastructure. The diversified mix of international debt instruments also strengthens the company’s capital structure while aligning with its impact focused mandate.

“Access to quality education goes hand in hand with safe infrastructure and healthy learning environments,” said Steve Hardgrave, Wholetime Director and Executive Vice Chairman at Varthana. “This diversified pool of international capital allows us to scale our impact responsibly, supporting affordable schools with long term financing for infrastructure, including WASH, while continuing to strengthen the education ecosystem for millions of students across India.”

The latest round follows a debt raise of INR 159 crore in July last year from global impact investors BlueEarth Capital, ResponsAbility, and Franklin Templeton Alternative Investments.

Founded in 2013 by Steve Hardgrave and Brajesh Mishra, Bengaluru-headquartered Varthana operates across 16 states and union territories through a network of 40 branches and 150 spokes. The company also provides education loans to students pursuing higher education, technical training, and postgraduate studies.

Varthana competes with players such as Avanse Financial Services, InCred Finance, Auxilo Finserve, Propelld, and HDFC Credila.