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Student Finance Pioneer Auxilo Secures $6 Million in Debt Funding

Education-focused NBFC Auxilo has successfully raised Rs 50 crore in non-convertible debt from AK Capital Finance, marking its first fundraise in 2023. The Mumbai-based company's board has approved the allotment of 5,000 non-convertible debentures (NCDs) at an issue price of Rs 1,00,000 each for a total consideration of Rs 50 crore, as per its regulatory filings with the Registrar of Companies.

Additionally, the offer includes an option for an additional subscription (green shoe option) of Rs 25 crore, potentially taking the total raise to Rs 75 crore. Established in 2017, Auxilo specializes in offering student loans for education both in India and abroad, as well as loans to educational institutions for infrastructure and working capital requirements.

Since its inception, Auxilo has raised over $100 million across equity and debt. It faces competition from well-funded firms such as Grayquest, Avanse Financial, Financepeer, Propelld, Leap Finance, and Eduvanz. In July last year, Auxilo secured Rs 470 crore in a funding round led by Tata Capital, valuing the company at around $250 million post-money.

Following the recent allotment, Tata Capital now holds a 10.58% stake in Auxilo, while ICICI Bank owns 9.34% of the company. Auxilo's revenue from operations witnessed a significant growth, reaching Rs 178 crore in FY23 from Rs 87 crore in FY22. This revenue includes net gains on fair value amounting to Rs 4.4 crore in FY23 and Rs 1.4 crore in FY22. The company primarily generates revenue through processing fees, interest on loan disbursements, and commissions.

Auxilo's profits also doubled to Rs 25.7 crore in FY23 from Rs 12.4 crore in FY22. As of July 2023, Auxilo claims to have funded over 7,500 students across more than 900 universities in over 25 countries. In FY22, the company's loan book (asset under management) stood at Rs 769 crore, comprising education loans of Rs 605.70 crore (78.73%) and institute loans worth Rs 163.60 crore (21.27%). Although the company did not provide a detailed breakup for FY23, its loan book stood at Rs 1,691 crore in the previous fiscal year.


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