Fintech
Auxilo Finserve Raises $30M From LeapFrog Investments – FF News
Auxilo Canned Foodleading education-focused NBFC, is raising INR 279 Cr in a fresh round of equity funding to expand its student loan portfolio and enable better infrastructure for quality education. LeapFrog Investments (“LeapFrog”), the for-profit investment firm, is investing $30 Mn 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 rising cost of accommodation and academic requirements mean that the aspiration to continue education is often out of reach for many Indian students, especially those from low- and middle-income families. Auxilo’s innovative underwriting model uses students’ academics, test scores, country of study and choice of degree to predict future employability, enabling it to offer merit-based funding to a growing range of students seeking to earn master’s degrees and other postgraduate qualifications at top universities around the world.
Indian students have a long history of acquiring post-graduate knowledge and skills at a number of top-tier international universities, which has led to the development of world-class Indian STEM companies in IT, biotechnology, AI and manufacturing. The high-end Indian diaspora contributes to the $111 billion in annual remittances (the largest in the world), which are reinjected into the domestic economy every year. Many return to India to found and run the country’s largest companies or work in key enablers such as venture capital, private equity, banking and consulting firms, which together support the world’s third-largest startup ecosystem, 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 the continued support of our existing investors, will enhance our ability to support students in achieving their academic dreams,” said Neeraj Saxena, MD and CEO of Auxilo.
The new round of capital infusion will be used to expand customer reach, enhance student financing, integrate technology infrastructure into business processes, and enhance the company’s institutional lending segment.
Stewart Langdon, Partner and Head of Digital at LeapFrog Investments, said: ‘LeapFrog is dedicated to supporting stepping stones to prosperity across a range of industries in India, from finance and insurance to healthcare and cleantech. With Auxilo, we see a unique opportunity to empower the best and brightest to pursue their dreams of higher education and training, regardless of their financial background. We look forward to working with Neeraj and the team.’
Auxilo’s loans and advances grew at 75% CAGR (compound annual growth rate) during FY21-24 and stand at Rs 2,878 crore as on March 31, 2024. Auxilo’s rapid growth has been accompanied by rigorous risk management, maintaining excellent asset quality and creating value for all stakeholders. Auxilo’s 350 employees operate across seven branches, offering loans to customers across India.
Auxilo has entered into definitive agreements with investors and the transaction is expected to close shortly.