We are discussing the Education Finance Startup Auxilo Secured $12 Million in its Debt Funding Round Led by Dezerv Securities:
Auxilo is an education-focused Non-banking financial company that provides education loans to students. The startup raised 12 million USD from Dezerv Securities in its debt funding round. The funding round involved new and existing investors, including MAS Financial Services and CredAvenue Securities (known as Yubi). The startup plans to use these fresh proceeds to scale its operations, improve its services, enhance its platform, strengthen its security, and meet general purposes.
The board has approved a resolution to allot non-convertible debentures at an issue price of Rs 1,00,000 to raise $12 million. The company previously secured $33.6 million in its funding round led by private equity firm LeapFrog Investments with the participation from Trifecta leaders fund-I and Xponentia opportunities fund-II.
Dezerv securities invested around Rs 26.39 crore in this debt funding round, followed by MAS financial services with Rs 25 crore investment, and CredAvenue securities also invested Rs 25 crore. The startup provides customized education-related loans for students pursuing education in India and abroad. The company previously secured $37 million in its funding round from Tata Capital Growth and has raised a total of $145 million funds across all its equity and debt funding rounds since its inception.
The startup offers extended loans to educational institutions for working capital requirements and infrastructure. The company announced that it has offered loaning services to more than 12,000 students across 1,100 education institutes and universities in over 30 countries. The non-convertible debentures issued to MAS financial and CredAvenue securities have a tenure of 3 years with an interest rate of 9.65 percent. At the same time, the Dezerv securities have a tenure period of 29 months with an annual coupon rate of 9.90 percent.
The startup plans to provide education loans worth Rs 25,000 to more than 150,000 students across India and globally. Auilo aims to help students across different sectors by providing loans at low interest rates, including graduate and postgraduate courses. The New Delhi-based startup reported a two-found YoY growth of Rs 174 crore in FY23. The profits also doubled to Rs 26 crore in the same duration. The company aims to revolutionize education-related loaning services locally and globally. Auxilo faces competition from other education financial services providers in this market, such as Avanse, InCred, Eduvanz, and HDFC Credila.
Conclusion
An Indian education financial service-providing startup, Auxilo raised $12 million in debt funding rounds from Dezerv Securities, MAS Financial Services, and CredAvenue Securities. The startup offers education-related loans to students who want to pursue their education in India or abroad. The company claims to provide its services across 30 countries, including India. The board at the company passed a special resolution to allot NCDs and raise Rs 100 crore. The NCDs issued to CredAvenue securities and MAS financial services have a tenure of 3 years, while the Dezerv securities have a tenure period of about 29 months. The startup has secured a total of $145 million to date.
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