Auxilo Raises $6 Million in Debt for Education Financing

auxilo logo

Three points you will get to know in this article:

  • Auxilo got Rs 75 crore debt in 2023’s first fundraising.
  • Tata Capital and ICICI Bank have significant shares in the company, valued at approximately $250 million.
  • Auxilo doubles revenue to Rs 178 crore, profits Rs 25.7 crore, supports 7,500+ students.
AK Capital Finance logo

Introduction: Auxilo

Auxilo Finserve Pvt. Ltd., founded in 2017, is a Reserve Bank of India-registered non-banking financial company that supports education. Auxilo provides financial support to a large network of students as well as a variety of schools, colleges, and universities in order to build a nation that takes pleasure in producing exceptional brains. With each passing second, India becomes more aspirational, and Auxilo takes satisfaction in cultivating these goals and assisting millions of Indians and hundreds of educational institutions in becoming more globally prepared.

Inaugural Fundraising and NCD Issuance

Education-focused NBFC Auxilo has secured Rs 50 crore (around $6 million) in non-convertible debt from AK Capital Finance, marking its inaugural fundraising endeavor of 2023.

According to the company’s regulatory filings with the Registrar of Companies, the board at Auxilo has given the green light for the issuance of 5,000 non-convertible debentures (NCDs) at a rate of Rs 1,00,000 each, amassing a total of Rs 50 crore.

Additionally, the offering extends an opportunity for an extra subscription (known as the green shoe option) worth Rs 25 crore, potentially elevating the total sum to Rs 75 crore.

Funding History and Competitive Landscape

Auxilo provides financial assistance to students pursuing education either domestically or internationally. Additionally, it supports educational institutions by offering loans for their infrastructure and operational needs.

Since its establishment, Auxilo has secured over $100 million in funding from both equity and debt sources. In the competitive landscape, it faces notable contenders like Grayquest, Avanse Financial, Financepeer, Propelld, Leap Finance, and Eduvanz.

Last July, Auxilo successfully raised Rs 470 crore in a funding round spearheaded by Tata Capital. According to insights from the startup intelligence platform TheKredible, this funding round propelled Auxilo’s valuation to approximately $250 million post-investment.

After the latest round of allotment, Tata Capital now possesses a 10.58% stake in the company, with ICICI Bank holding 9.34% ownership. For a detailed breakdown of the shareholding pattern, feel free to explore further.

Revenue Growth and Financial Performance

In the financial year 2023, Auxilo witnessed a remarkable growth in revenue, doubling to Rs 178 crore from Rs 87 crore in FY22. This figure encompasses a net gain on fair value amounting to Rs 4.4 crore in FY23 and Rs 1.4 crore in FY22. The company’s revenue streams mainly stem from processing fees, interest earned on loan disbursements, and commissions.

Moreover, the company experienced a significant surge in profits, doubling to Rs 25.7 crore in FY23 from Rs 12.4 crore in the preceding fiscal year.

Loan Portfolio and International Reach

In July 2023, Auxilo proudly announced its support for more than 7,500 students spanning across 900 universities in over 25 diverse countries. In the financial year 2022, the company managed assets worth Rs 769 crore, with educational loans constituting Rs 605.70 crore (78.73%) and institute loans amounting to Rs 163.60 crore (21.27%). Although specific figures for FY23 were not disclosed, Auxilo’s loan portfolio had reached Rs 1,691 crore in the preceding fiscal year.

Auxilo, an education-focused NBFC, secured Rs 50 crore in non-convertible debt from AK Capital Finance, marking its inaugural fundraising in 2023. Founded in 2017, it offers financial assistance to students pursuing education domestically or internationally, along with support for educational institutions. With over $100 million secured in funding, notably from a Rs 470 crore funding round led by Tata Capital, the company’s valuation reached approximately $250 million post-investment. In FY23, Auxilo witnessed significant revenue growth, doubling to Rs 178 crore, with a surge in profits to Rs 25.7 crore. It also announced support for over 7,500 students across 900 universities in 25 countries. The company’s loan portfolio had reached Rs 1,691 crore in the preceding fiscal year.

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