14th October, 2016, New Delhi, India – Indian School Finance Company Pvt Ltd (ISFC), India’s first private institutional lender to the education sector, announced $6 million of Series A financing from impact investor Gray Matters Capital. The Non-Banking Finance Company (NBFC) shall use this new round of financing to expand its loan portfolio by reaching out to more clients in existing and newer geographies. The infusion shall also enable ISFC to leverage its enhanced equity base to garner more debt from the market.
Unitus Capital acted as the exclusive financial advisor for the transaction.
ISFC has focused exclusively on the education ecosystem for the last 7 years, lending to private schools, pre-schools, colleges and institutes, coaching centers, and teachers. ISFC is committed to financial inclusion and, therefore, most of its clients are affordable private schools., ISFC has distributed more than 3,000 loans across 13 states in India.
Loans are targeted towards capacity building by improving infrastructure, thereby enabling students to access high quality education. Use of loans may include the purchase of land and buildings for schools and colleges, construction or renovation of buildings, and upgradation of school infrastructure that includes computers, furniture, and labs. ISFC’s offering fits very well in the existing market, with exclusive focus on the education sector. ISFC’s product offerings are effective, flexible and customizable, suiting the varying needs of education institutions. Its innovative loan product for teachers is unique and provides an attractive alternative to personal loans from banks.
ISFC is led by Neeraj Sharma who has significant experience in the Indian financial sector, having worked at leadership positions in different commercial establishments. Neeraj has over 20 years of experience spread across Fullerton India, AIG Consumer Finance, Ballarpur Industries, Fibcom India (Tellabs JV), Bridgestone India and ACC Limited in various capacities. Ankur Aggarwal is COO of the company, having over 13 years of experience across Karvy Financial Services and Fullerton India.
“The Indian education market presents a great opportunity to us owing to its large size. Our company is widely recognized for its role in funding the education segment’s much needed capital for building infrastructure. Current equity infusion will provide the necessary fillip required by ISFC to leapfrog to the next level of growth.” said Neeraj. “This funding will help us leverage more” added Ankur.
Mr. Robert Pattillo, founder of Gray Matters Capital, said “India has a huge base of Affordable Private Schools, which presents a huge opportunity to scale. With absence of significant competition, growth is possible both by going deep and going wide. ISFC is doing a great job by being a growth catalyst to institutions that act as pillars to the education sector in India.”
In the past, ISFC has raised capital from Gray Ghost Ventures and Caspian Advisors.
About Indian School Finance Company
Indian School Finance Company Private Limited (ISFC), is a Non-Banking Finance Company engaged in the business of lending to educational institutions and entrepreneurs. ISFC started its operations in 2009 from Hyderabad and later expanded to others cities and states, currently being present in 13 states and 60 locations catering to more than 100 districts. The company is widely known and appreciated in the education segment for its impact on schools and quality of education. More about ISFC >
About Gray Matters Capital
Gray Matters Capital (GMC) is an Impact Investing Enterprise that actively invests in sustainable, replicable business models that benefit underserved populations in developing countries. GMC’s mission is “An education for 100 million women by 2036 that leads to a purpose-filled life.”