Funding for startups: Bengaluru-headquartered non-banking financial company (NBFC) for schools Varthana on Friday announced raising $2.5 million for an education-focused social bond from investment and asset management platform Symbiotics Investments. The NBFC focuses on providing affordable education loans to schools and students.
A social bond is a type of financial instrument that is issued by organizations or companies with the intention of raising funds to support socially beneficial projects or initiatives. The funds generated from the issuance of the social bond are typically dedicated to projects that have a positive impact on society, aligning with goals such as education, healthcare, environmental sustainability, and more.
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Varthana said it will help schools in semi-urban and rural areas develop infrastructure, construction, and purchase of equipment with the funding raised. The social projects that will be financed are represented by loans for primary and secondary schools for vocational training.
“The low-budget schools in which we invest are counting on inclusive financial services to get back on the growth path following the unprecedented challenges faced during the pandemic. We are thankful to Symbiotics for their support, which enhances Varthana’s ability to play a constructive role in helping with the post-COVID-19 recovery and ongoing improvement of schools throughout the country,” said Steve Hardgrave, Co-founder and Chief Executive Officer, Varthana Finance.
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The education-focused bond was issued via Symbiotics’ sponsored bond issuance platform (Micro, Small & Medium Enterprises Bonds S.A.) under its Sustainable Bond Framework, which was certified in December 2019 and November 2021 by DNV GL. The bond is listed on the Securities Official List of the Luxembourg Stock Exchange and displayed on the Luxembourg Green Exchange.
“With this education-focused bond, Symbiotics Investments opens the door for international investors to contribute to the expansion of the education sector in India and directly invest in the future generation of this vibrant country,” said Prashant Bhardwaj, Symbiotics Investments Regional Manager South Asia.
Symbiotics is a marketing access platform that focuses on impact investments in emerging and frontier economies. Since 2005, it has made more than 7,500 investments worth over $9.4 billion from 575 companies.