The non-banking financial corporation (NBFC) Auxilo, which focuses on education, has raised debt financing totalling Rs 100 crore, or about $12 million.
In order to raise Rs 100 crore ($12 million), the board of Auxilo issued non-convertible debentures (NCDs) at an issue price of Rs 1,00,000 apiece, according to its regulatory filing that was obtained from the Registrar of Companies (RoC).
Contributions from Dezerv Securities totaled Rs 26.39 crore, with contributions from MAS Financial Services and CredAvenue Securities (Yubi) totaling Rs 25 crore each. Investors will soon release the remaining amount.
While the debentures issued to Dezerv have a tenure of 29 months and an annual coupon rate of 9.90%, the NCDs issued to MAS Financial and CredAvenue (Yubi) have an interest rate of 9.65% for a 36-month period.
This news comes at the same time as LeapFrog Investments, a private equity firm, leads Auxilo’s $33.6 million funding round. LeapFrog contributed $30 million, and Trifecta Leaders Fund-I and Xponentia Opportunities Fund-II contributed the remaining funds, according to Auxilo.
It looks that the recent announcement and the debt funding are unrelated.
With the help of debt and equity, Auxilo has raised about $145 million since its founding, including a $57 million funding round headed by Tata Capital Growth in July of last year.
Auxilo was founded in 2017 and provides student loans to those who want to study abroad or in India. Moreover, it provides loans to academic institutions to meet their working capital and infrastructure needs.
Over 12,000 students at more than 1,100 universities and educational institutions in more than 30 countries have reportedly benefited from education loans from Auxilo since the company’s founding. Over 150,000 students in India and abroad are expected to receive loans totalling Rs 25,000 crore over the course of the next five years.
With over 2X year-over-year growth to reach Rs 174 crore in FY23, the New Delhi-based company showed impressive financial performance. In addition, its earnings in FY23 doubled to Rs 26 crore. The business still hasn’t submitted its FY24 annual report.
