Varthana Secures $3 Million in Funding
Non-Banking Finance Company (NBFC) Varthana has successfully raised $3 million (Rs 27 crore) through non-convertible debentures (NCD) from Triodos Investment Management. This infusion of funds is set to bolster Varthana’s mission to enhance educational infrastructure and support for low-budget private schools and students in India.
Expansion of Educational Support
The proceeds from this funding round will be strategically utilized to expand Varthana’s reach, enabling the company to support more schools and students in upgrading their infrastructure, facilities, and educational foundations. This move aligns with Varthana’s long-term vision of fostering educational growth and development across India.
Varthana’s Operational Footprint
Founded in 2013 by Steve Hardgrave, Varthana Finance operates as a dedicated NBFC, providing much-needed credit to low-budget private schools and students pursuing higher education in India. The company’s operations span 15 states, catering to over 8,500 schools and benefiting approximately four million students. Varthana has disbursed over 15,000 loans and has established partnerships with more than 750 loan institutions, underscoring its significant impact on the education sector.
Financial Performance
Despite its broad reach and impactful operations, Varthana has faced financial challenges over the past two fiscal years. The company’s revenue has seen a decline, dropping from Rs 211 crore in FY21 to Rs 190 crore in FY22, and further decreasing to Rs 183 crore in FY23. This funding from Triodos Investment Management is expected to provide a much-needed boost to help Varthana navigate through these financial challenges and continue its mission.
About Triodos Investment Management
Triodos Investment Management, based in the Netherlands, is known for its focus on sectors such as food, resources, energy, society, and wellbeing. Operating globally as an impact investor, it is a wholly owned subsidiary of Triodos Bank NV. Triodos Investment Management’s investment in Varthana underscores its commitment to supporting impactful ventures that contribute to societal development.
Strategic Partnerships and Future Plans
Varthana’s partnership with Triodos Investment Management is poised to pave the way for significant advancements in the company’s operations. The fresh capital will be instrumental in enhancing Varthana’s capabilities to provide financial support to educational institutions, thereby fostering an environment conducive to learning and growth.
KonProz Raises $700K for GenAI Development
In a parallel development, KonProz, a generative artificial intelligence (GenAI) startup, has raised $700,000 in a new funding round led by Dr. Ruchi Parekh, RDB Group, and other angel investors. This funding will be used to build GenAI intellectual property for the legal domain, expand the team, and scale operations to broaden KonProz’s platform capabilities.
Leveraging Emerging Technologies
Founded by Piyush Chopra and Shiladitya Dash, KonProz leverages emerging technologies such as GenAI to build Software as a Service (SaaS) solutions for the legal, tax, and regulatory space. Since its inception, the company has garnered significant attention for its flagship product, KonProz GPT, the first GenAI tool trained specifically on India’s tax, legal, and regulatory laws.
User Adoption and Product Development
Since the release of its phase 1 product in November 2023, KonProz has attracted over 2,000 active users, including senior professionals from the Big 4 accounting firms and Tier 1 law firms. The company now aims to build a comprehensive suite of products to further enhance its offerings and solidify its position in the market.
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