Education-focused NBFC Auxilo secured $6 M Debt funding from AK Capital Finance
Focusing on education AK Capital Finance has provided NBFC Auxilo with non-convertible debt worth Rs 50 crore, or roughly $6 million. This is the Mumbai-based company’s first fundraising effort for 2023.
According to Auxilo’s regulatory filings with the Registrar of Companies, the board has approved the allotment of 5,000 non-convertible debentures (NCDs) at an issue price of Rs 1,00,000 each for a consideration of Rs 50 crore.
An additional subscription (the “green shoe option”) worth Rs 25 crore is also included in the offer, bringing the total to Rs 75 crore.
Auxilo is a 2017-founded company that provides student loans for study abroad or in India. Additionally, it provides loans to educational establishments to meet their working capital and infrastructure needs.
Since its founding, Auxilo has raised more than $100 million in debt and equity, and it faces competition from well-funded companies like Grayquest, Avanse Financial, Financepeer, Propelld, Leap Finance, and Eduvanz.
Auxilo won Rs 470 crore in a funding round headed by Tata Capital in July of last year. Reports state that the business raised the funds at a post-money valuation of about $250 million.
Following the round’s allocation, ICICI Bank holds a 9.34% stake in the business, while Tata Capital owns 10.58% of it.
From Rs 87 crore in FY22 to Rs 178 crore in FY23, Auxilo’s operating revenue increased by 2X. This revenue includes net gain on fair value, which was valued at Rs 1.4 crore in FY22 and Rs 4.4 crore in FY23. Its main sources of income are commissions, interest on loan disbursements, and processing fees.
The company’s profits reportedly doubled during the year, from Rs 12.4 crore in FY22 to Rs 25.7 crore.
According to Auxilo, as of July 2023, more than 7,500 students were receiving funding from more than 900 universities in more than 25 countries.
The education loan portfolio of the company, which accounted for Rs 605.70 crore (78.73%) and the institute loan portfolio, which accounted for Rs 163.60 crore (21.27%), made up Rs 769 crore during FY22. Although the company did not disclose the breakdown for FY23, in the preceding fiscal year, its loan book was valued at Rs 1,691 crore.
