Mubadala made its funding commitment in India's Avanse Financial Services through an affiliate entity. Avanse is India's second largest NBFC focused on education finance. Image Credit: Shutterstock

Dubai: The Abu Dhabi fund Mubadala is investing in the Indian student loans provider Avanse Financial Services. This is through a Mubadala affiliate, the Alpha Investment Company, and with participation from Avendus PE Investment Advisors Private Ltd.

The funds will enable Avanse, which is a non-banking financial company, strengthen its position in the 'rapidly evolving education financing segment' and 'achieving sustained profitable growth'.

This is Mubadala’s first in India's financial services sector in India and is part of a plan to double the company’s exposure in Asia by 2030.

Avanse is the second largest NBFC in the Indian education finance space. The company has also provided growth and working capital to Indian educational institutions. 

“Avanse will continue to enable young generations of Indian students to fulfil their aspirations," said Luca Molinari, Head of Asia and Financial Services at Mubadala. 

According to Amit Gainda, Managing Director and CEO of Avanse, “We are delighted to welcome our new strategic investors, who share a common vision of strengthening the education financing segment in India."

Existing shareholders in Avanse - which has extended loans to more than 400,000 students - include Warburg Pincus, Kedaara Capital and International Finance Corporation.