New Delhi, India, August 6, 2013
—IFC, a member of the World Bank Group, is investing $2.3 million as equity in start-up firm Avanse Financial Services to expand its ability to provide loans to Indian students pursuing higher education in India and overseas, improving access to quality education.
IFC’s investment could help an estimated 90,000 students avail education loans over the next seven years. Avanse is an associate company of Dewan Housing Finance and is keen to establish itself in the education finance market. In addition to providing start-up capital, IFC will advise Avanse to strengthen its credit appraisal, underwriting processes, and risks management systems.
“IFC’s investment is an endorsement of our business plan in promoting growth in an underserved market,” said Kapil Wadhawan, Chairman, Avanse Financial. “With IFC’s global industry knowledge and expertise, Avanse can demonstrate the viability of financing higher education in India.”
With over 150 million people in the 18-23 years age group, India is one of the world’s largest education markets. However, education loans for students of premier educational institutions are hard 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's investment in Avanse will help students access financing for pursuing higher education while shaping the market for education finance.”
IFC is one of the largest multilateral investors in private education in emerging markets, investing to improve access, lower costs, and help students prepare for employment. IFC’s education portfolio stands at over $660 million across 42 projects in 24 countries, including several of the world’s poorest. The total value of these projects is about $1.8 billion.
Dewan Housing is an existing client of IFC. In 2003, IFC provided a loan of around $12.5 million to the company. IFC has also co-invested in Aadhar Housing Finance, a company jointly promoted by DHFL Group and IFC that provides home loans for low income segments.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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