Auxilo Finserve Secures $33M Funding Led by LeapFrog Investments.

Auxilo Finserve, an Indian education-focused Non-Banking Financial Company (NBFC), has secured $33 million in a new funding round led by LeapFrog Investments, a “profit with a purpose” firm based in Ebene, Mauritius, for enhancing its education loans, student funding, institutional lending, and technological infrastructure to support a broader range of students.

Founded in 2017, Auxilo Finserve aims to serve Indian students with domestic and international loans. LeapFrog Investments contributed $30 million in guaranteed capital, with additional support from existing Auxilo investors Trifecta Leaders Fund-I and Xponentia Opportunities Fund-II.

Auxilo Finserve plans to use this latest financing to enhance its institutional lending segment, improve student funding, extend customer outreach, and integrate technological infrastructure. The company claims its innovative underwriting model uses the student’s country of study, degree choice, and test scores to predict future employability. It allows them to offer merit-based finance to a broader range of students.

Stewart Langdon, partner and head of digital at LeapFrog Investments, said the company is “dedicated to supporting springboards into prosperity across a range of sectors in India,” noting that sectors of interest range from “finance and insurance to healthcare and clean technologies.”

Auxilio’s Debt Financing Round

Auxilo Finserve has raised INR 100 crore (approximately $12 million) in a debt financing round in a separate development. The board issued non-convertible debentures (NCDs) at an issue price of Rs 1,00,000 each. Dezerv Securities invested Rs 26.39 crore, while MAS Financial Services and CredAvenue Securities (Yubi) contributed INR 25 crore each.

The NCDs issued to MAS Financial and CredAvenue (Yubi) have a tenure of 36 months with an interest rate of 9.65 percent, while those issued to Dezerv have a tenure of 29 months with an annual coupon rate of 9.90 percent.

Auxilo Finserve has raised around $145 million in equity and debt since its inception, including a $57 million funding round led by Tata Capital Growth in July 2023.

The company has provided education loans to over 12,000 students across more than 1,100 universities in over 30 countries. Auxilo Finserve aims to disburse INR 25,000 crore worth of loans to more than 150,000 students in the next five years.

The New Delhi-based company demonstrated strong financial performance, achieving over 2X year-on-year growth to reach Rs 174 crore in FY23. Additionally, profits doubled to Rs 26 crore in FY23.

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