Shiksha Financial Services India Limited has raised $7.7 Mn from Private equity firm Zephyr Peacock India Growth Fund.
Bengaluru, 16 Feb, 2019. RedNewswire/-
Existing investors Aspada and Michael and Susan Dell Foundation also participated in this round. Zephyr Peacock India Fund provides growth capital and managmenet support to small and mid-sized enterprises in India.
Founded in 2014, Shiksha Finance provides working capital loans to educational institutions and loans to parents for uninterrupted school education of their children.
The raised funds will be used to finance the growth plans of the company and strengthen the management team. Shiksha will use the funding to expand its presence in Tamil Nadu, Andhra Pradesh, Telangana and Karnataka and enter Maharashtra.
Pankaj Raina, managing director at Zephyr Peacock said, “Shiksha is uniquely placed in the education financing ecosystem as a lender to both schools and students. Its product offerings help improve the quality of affordable private schools and help children from low-income backgrounds access quality education.”
Kartik Srivatsa, Managing Partner, Aspada said, “We are delighted that Shiksha’s unique business model has demonstrated a sustained ability to raise both debt and equity at scale. Equity infusion in a challenging market environment is a strong reaffirmation of the fundamentals of Shiksha’s business model and the role the company plays in offering much needed capital to India’s educational institutions.”
The average student loan is for ₹25,000 for 12 months, while the average school loan is of ₹7 lakh for a tenure of four years, said Shiksha chief executive officer and director V.L. Ramakrishnan . It has a loan book of ₹102 crore, which it aims to double over the next 5-6 quarters.
In November 2016, Shiksha secured about $1 mn from The Michael & Susan Dell Foundation and Aspada.