Education-focused NBFC Varthana has reportedly secured Rs 75 Cr (approx. $8.7 million) in debt funding, co-led by OfBusiness and its financial arm Oxyzo, to boost its loan offerings for low-cost private schools and students.

The funds were raised through the issuance of 75,000 non-convertible debentures (NCDs), each with a face value of Rs 10,000. OfBusiness and Oxyzo invested Rs 27.5 crore each, while Ambium Finserve and IKF Finance contributed the remaining Rs 20 crore, reported Inc42.

The latest round follows a Rs 120 crore debt infusion from BlueOrchard in December 2024.

Founded in 2013, Bengaluru-based Varthana plans to use the fresh capital to scale its education loan portfolio, particularly targeting underserved private schools and students seeking higher education or skill development courses. 

With operations in 40 cities across 15 states, the NBFC claims to have served over 11,500 schools and disbursed 75,000+ loans to date. The company aims to grow its loan book by 50% by March 2026. 

The firm reported a 48% YoY growth in its loan book to Rs 1,896 crore in FY25, up from Rs 1,280 crore in FY24 and Rs 900 crore in FY23, the media platform quoted Varthana's spokesperson as saying.

In FY24, Varthana posted a net profit of Rs 30 crore on an operating revenue of Rs 209 crore.