Varthana
Varthana is a non-bank financing company that focuses on lending specifically to affordable private schools in India. Varthana offers low-cost, collateral-free, and tailored loans to private schools and students. The company targets school entrepreneurs with credibility in their communities, operating schools that charge a monthly fee of $5-25 per student. Varthanas financing solutions allow client schools to expand their infrastructure, invest in teacher training, and introduce new learning methods. Varthana also assisted with online learning plans that would be accessible for families with basic phones. Over the past decade, Varthana has played a crucial role by financing more than 9,500 affordable private schools and facilitating over 15,000 loans for school expansion and renovation. The company has a presence in 16 states/union territories and 40 branches, significantly contributing to fostering accessible education in India.
Pros
Provides much-needed financing to affordable private schools in India
Enables schools to improve infrastructure and invest in teacher training
Offers flexible, low-cost loans tailored to school needs
Contributes to improving access to quality education in low-income communities
Cons
Reliance on external funding and investments for operations
Potential challenges in scaling to meet the vast demand in India's education sector
Partners
Varthana
Blue Earth Capital
US International Development Finance Corporation (DFC)