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Bangalore-based non-banking financial company (NBFC) Varthana on Wednesday raised $7 million (approximately Rs 56 crore) from MicroVest, a global investment firm based out of the US.

A pioneer in the affordable education loan sector, Varthana will use the funds for transforming affordable education in rural India and providing loans to affordable private schools on a pan-India basis. The funding will strengthen Varthana’s aim of aiding and supporting affordable schools to recover from the disruptions caused by COVID-19, a press release stated.

Speaking on the development, Steve Hardgrave, CEO and Co-founder, Varthana, said, “MicroVest has been our long-term investment partner working towards the cause of providing access to quality education in India.

“The low-budget schools in which we invest are counting on inclusive financial services to get back to business, following the unprecedented challenges faced during the pandemic. With the support of MicroVest, Varthana is now in a stronger position to play a constructive role in aiding these affordable schools.”

Launched in 2013, Varthana has a presence in 15 states, through 40 branches and 150 spokes. Besides providing loans, it has helped schools implement digital learning tools and teaching methods so that students could continue education remotely throughout the pandemic.

“Varthana is a testament to the impact that every dynamic financial institution can make when provided the opportunity to scale its innovations and approaches. We are committed to supporting Responsible Financial Institutions like Varthana. During this challenging post-COVID environment, their efforts are more important than ever,” said Joshua Moraczewski, CEO, MicroVest .