Auxilo Finserve, the leading education-focused NBFC, is raising INR 279 Cr in a fresh round of equity funding to expand its student lending portfolio and enable better infrastructure for quality education. LeapFrog Investments , the profit with purpose investment firm, is investing $30 million in the current round through its investment vehicle Jade Inclusion Ltd. This round will also see participation from existing investors Trifecta Leaders Fund-I and Xponentia Opportunities Fund-II.

Rising tuition fees and the increasing cost of accommodation and academic necessities, mean the aspiration of pursuing higher education is often unattainable for many Indian students, especially those from low- and middle-income households. Auxilo’s innovative model of underwriting uses student academics, test scores, country of study and degree choice to predict future employability, allowing it to offer merit-based finance to an increasingly broad range of students seeking to acquire master’s degrees and other post-graduate qualifications at the world’s top universities.

Indian students have a long tradition of acquiring post-graduate knowledge and skills at a range of top tier international universities, leading to the development of world-class Indian STEM companies in IT, biotech, AI and manufacturing. India’s high achieving diaspora contribute to the $111 billion in annual remittances, which is re-injected into the domestic economy each year. Many return to India to found and operate the country’s largest companies, or work in key enablers like venture capital, private equity, banking and advisory firms, which together support the third largest startup ecosystem in the world, collectively valued at $350 billion in 2023

“LeapFrog’s commitment to social impact aligns perfectly with our vision of empowering individuals through education. This investment, along with continued support from our existing investors, will enhance our ability to support students in achieving their academic dreams,” said Neeraj Saxena, MD & CEO at Auxilo.

The new round of capital infusion will be utilized to expand customer reach, enhance student funding, incorporate technological infrastructure across business processes, and boost the company’s Institutional lending segment.

Stewart Langdon, Partner and Head of Digital at LeapFrog Investments, said: “LeapFrog is dedicated to supporting springboards into prosperity across a range of sectors in India – from finance and insurance, to healthcare and clean technologies. With Auxilo, we see a unique opportunity to enable the best and brightest to pursue their dreams of higher education and training, no matter their financial background. We look forward to working with Neeraj and the team.”

Auxilo’s Loans and advances have grown at 75% CAGR during FY21-24 and stand at INR 2,878 crore as on March 31, 2024. Auxilo’s rapid growth has been accompanied by rigorous risk management, maintaining excellent asset quality, while creating value for all stakeholders. Auxilo’s 350 employees operate out of seven branch offices, offering loans to customers across India.

Auxilo has entered into definitive agreements with the investors and the closing of the transaction will happen in the near future.