Warburg holds about 80% stake in Avanse. world bank branch International Finance Corporation (IFC) owns the remaining 20% ​​stake in the non-banking finance company. Avendus is hired by Warburg Pincus to find potential suitors. A formal process is expected in the coming weeks.
Established in 2013, advance Has funded over 250,000 students in over 3,000 institutions across India and 22,000 courses in over 50 countries.
Avanse has an AUM of ₹ 4,836 Crore as on 31st March 2022. During FY22, the organization witnessed the highest ever growth in disbursements of ₹2,927 crore, a 3-fold increase over FY2011. Avanse recorded a PAT of ₹63 crore, indicating a growth of 1.7x over FY2011. At the end of FY22, the net worth was ₹1,010 crore, the company said.
NBFCs provide education loans to students from school to post-graduation as well as loans to educational institutions to finance their working and development capital needs.
Mail sent to Warburg Pincus did not elicit any response till press time.
Although financial details of the 2012 Warburg Pincus transaction were not disclosed, the company was valued at ₹1,100 crore. The deal also involved a primary investment of ₹300 crore.
Avanse’s major competitors are
Credila, Vartana, Shiksha Financial Services and Manya Group. Major education providers are already funded by India-focused private equity firms.
Warburg, which has invested more than $6.5 billion in India since 1995, has made several good exits in recent times.
Once implemented, Avanse will be out of Warburg Pincus from January 2021. In February last year, Warburg Pincus sold back its 20% equity stake in DTH firm Bharti Telemedia.
₹3,126 crore for total consideration. Warburg bought a minority stake in December 2017 for ₹2,258 crore. In March 2021, and Special Economic Zones, Gautam Adani’s flagship company, acquired Warburg’s entire 31.5% stake in Gangavaram Port for ₹1,954 crore. In March 2021, Warburg reduced its stake in Kalyan Jewelers from 32% to 24% through an IPO of Kerala-based Kalyan. Other exits include Embassy Industrial Park and . In December 2021, Warburg sold its 80% stake in Encora at a valuation of $1.5 billion.