Bengaluru-based Varthana Finance, a non-banking finance company (NBFC) specializing in providing loans to affordable private schools and students for higher education, has completed the acquisition of India School Finance Company (ISFC)’s school loan portfolio across 14 states, totaling ₹126 crore. As part of this transaction, Varthana Finance will assume ownership of the loan portfolios associated with all 1000 schools currently under ISFC’s purview, the company announced on Friday.
Of the 1,000 schools included in the acquisition deal, Varthana Finance has confirmed that over 100 of them are located in diverse districts across Karnataka. This regional distribution highlights the breadth of Varthana’s expansion and its commitment to supporting education across different regions within the state.
Steve Hardgrave, CEO & co-founder of Varthana, emphasized the importance of the acquisition, stating, “Taking the ISFC portfolio under Varthana’s wing is a significant step in our journey to ensure that India’s schools are well supported to deliver quality education to the country’s 350 million young people.”
Sandeep Wirkhare, CEO of ISFC, shared his perspective on the transaction, describing it as an exemplary case where an impact institution collaborates to create a product segment, stabilize operations, and then pass on the growth opportunity to a like-minded institution. He further noted the significance of maintaining strong relationships with customers and employees throughout this transition.
Dear Readers,
In a previous version of our article, it was inaccurately stated that Varthana Finance had acquired 1000 schools. We apologize for any confusion this may have caused. The correct information is that Varthana Finance has purchased a loan portfolio, not the schools themselves.
We regret the error and strive for accuracy in all our reporting. Thank you for your understanding.
Sources: The Hindu