Education-focused NBFC Auxilo Finserve has secured Rs 279 crore in a fresh round of equity funding, led by PE investor LeapFrog Investments, to expand its student lending portfolio, the company said in a release on Tuesday. LeapFrog is investing USD 30 million in the current round through its investment vehicle Jade Inclusion Ltd.
The current round of investment will also see participation from existing investors Trifecta Leaders Fund-I and Xponentia Opportunities Fund-II.
Auxilo has entered into definitive agreements with the investors and the closing of the transaction will happen in the near future.
“LeapFrog’s commitment to social impact aligns perfectly with our vision of empowering individuals through education. This investment, along with continued support from our existing investors, will enhance our ability to support students in achieving their academic dreams,” said Neeraj Saxena, MD & CEO at Auxilo.
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Auxilo’s innovative model of underwriting uses student academics, test scores, country of study and degree choice to predict future employability, allowing it to offer merit-based finance to an increasingly broad range of students seeking to acquire master’s degrees and other post-graduate qualifications at the world’s top universities, the release said.
The new round of capital infusion will be utilized to expand customer reach, enhance student funding, incorporate technological infrastructure across business processes, and boost the company’s Institutional lending segment, it said.
Stewart Langdon, Partner and Head of Digital at LeapFrog Investments, said: “LeapFrog is dedicated to supporting springboards into prosperity across a range of sectors in India – from finance and insurance, to healthcare and clean technologies. With Auxilo, we see a unique opportunity to enable the best and brightest to pursue their dreams of higher education and training, no matter their financial background. We look forward to working with Neeraj and the team.”