Auxilo Finserve raises $30m in equity round from LeapFrog Investments

By Gloria Mathias

Auxilo Finserve, the education-focused NBFC, has raised $30 million (INR 279 crore) in a fresh round of equity funding to expand its student lending portfolio and enable better infrastructure for quality education.

LeapFrog Investments (LeapFrog), a profit-with-purpose investment firm, invested $30 million in the current round through its investment vehicle, Jade Inclusion Ltd. This round also saw participation from existing investors, Trifecta Leaders Fund-I and Xponentia Opportunities Fund-II.

The new capital infusion will expand customer reach, enhance student funding, incorporate technological infrastructure across business processes, and boost the company’s Institutional lending segment.

Rising tuition fees and the increasing cost of accommodation and academic necessities mean the aspiration of pursuing higher education is often unattainable for many Indian students, especially those from low- and middle-income households.

Auxilo’s model of underwriting uses student academics, test scores, country of study and degree choice to predict future employability, allowing it to offer merit-based finance to an increasingly broad range of students seeking to acquire master’s degrees and other post-graduate qualifications at the world’s top universities.

“LeapFrog’s commitment to social impact aligns perfectly with our vision of empowering individuals through education. This investment, along with continued support from our existing investors, will enhance our ability to support students in achieving their academic dreams,” said Neeraj Saxena, MD & CEO at Auxilo.

Stewart Langdon, Partner and Head of Digital at LeapFrog Investments, said, “LeapFrog is dedicated to supporting springboards into prosperity across a range of sectors in India, from finance and insurance to healthcare and clean technologies. With Auxilo, we see a unique opportunity to enable the best and brightest to pursue their dreams of higher education and training, no matter their financial background. We look forward to working with Neeraj and the team.”

Auxilo’s rapid growth has been accompanied by rigorous risk management, which maintains asset quality and creates value for all stakeholders. Auxilo’s 350 employees operate out of seven branch offices, offering loans to customers across India.