Abu Dhabi’s Mubadala Investment Company (Mubadala) announced today its first venture into the financial services sector in India. This is part of its larger plan to double the company’s exposure in Asia by 2030. Mubadala will be investing in Avanse Financial Services, India’s new age, technologically advanced, education-focused non-banking financial company (NBFC).
Mubadala made the investment through its affiliate Alpha Investment Company with the participation of Avendus PE Investment Advisors Private Limited through its fund Avendus Future Leaders Fund II. The investment will allow Avanse to strengthen its position in the rapidly evolving education financing segment. Moreover, it will allow it to create unique customer experiences and achieve sustained profitable growth.
Empowering education finance
Avanse has emerged as a key player in the education finance space in India, which makes it an attractive opportunity for Mubadala. Ranked as the second largest NBFC in the education finance sector, Avanse has been on a robust growth trajectory. The company plays a major role in facilitating access to quality education for aspiring Indian students in multiple countries.
Notably, the company has also played a pivotal role in providing growth and working capital to educational institutions in India. This further solidified its position as a transformative force in the education financing sector. As of December 2023, the company’s assets under management stand at around AED5.5 billion.
“Avanse will continue to enable young generations of Indian students to fulfill their aspirations. We look forward to further enabling the growth of the business,” said Luca Molinari, head of Asia and financial services at Mubadala.
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Democratizing education
Amit Gainda, managing director and CEO of Avanse, emphasized the commitment to strengthening the education financing segment in India with Mubadala. Hence, both entities have a shared vision of making education accessible and affordable. Avanse’s partnership with Mubadala and its existing shareholders underscores a deep-seated belief that financial constraints should not hinder deserving students from pursuing quality education.
“The growth capital will enable us to strengthen our brand proposition, integrate digital solutions, and innovate to build more depth into our product range as we work towards delivering greater stakeholder value,” Gainda added.
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