BackIFC invests $2.3 million in education finance firm Avanse
IFC’s investment could help around 90,000 students avail of education loans over the next seven years
Premium(Priyanka Parashar/ Mint)
Mumbai: International Finance Corp. (IFC), a member of the World Bank Group, is investing $2.3 million (around ₹ 14 crore) in start-up Avanse Financial Services Pvt. Ltd to expand the education finance company’s ability to provide loans to students pursuing higher education in India and overseas. Avanse is an associate company of Dewan Housing Finance Corp. Ltd. (DHFL).
IFC’s investment could help an estimated 90,000 students avail of education loans over the next seven years, IFC said in a statement.
With over 150 million people in the 18-23 years age group, India is one of the world’s largest education markets. Education loans are, however, difficult to come by. With growing demand for higher education expected in mid-sized and smaller cities, alternative financing channels are needed.
“Private sector can play a significant role in improving access to quality education, especially in emerging markets," said Serge Devieux, IFC director for South Asia.
IFC is one of the largest investors in private education in emerging markets. Its education portfolio stands at over $660 million across 42 projects in 24 countries. The total value of these projects is about $1.8 billion.
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