Auxilo Secures Rs 50 Crore in Debt Financing

Auxilo, an education-focused non-banking financial corporation (NBFC), has successfully raised Rs 50 crore in debt funding from Motilal Oswal. This funding has involved the allocation of 5,000 Non-Convertible Debentures (NCDs) to Motilal Oswal Finvest Limited, each with a face value of Rs 1,00,000, cumulatively reaching Rs 50 crore split into Series I and Series II, consisting of 2,500 NCDs each.

According to the filing, the Series I NCDs come with a tenure of 2 years and an interest rate of 9.7% per annum, while Series II offers a slightly higher rate of 9.8% for a tenure of 3 years.

Education Financing by Auxilo

Auxilo, a dedicated NBFC for education, facilitates education loans for students pursuing higher education both in India and abroad, as well as for educational institutions aimed at modernizing their infrastructure. The educational loans provided cover a wide range of expenses including classroom costs, pre-visa approvals, airfare, among other related expenditures.

Growth and Competition

Since its establishment, Auxilo has raised over $100 million in both equity and debt. It competes with other well-established firms in the sector like Grayquest, Avanse Financial, Financepeer, Propelld, Leap Finance, and Eduvanz.

In the financial year 2024, Auxilo reported a remarkable 100% year-on-year increase in revenue, soaring to Rs 356 crore from Rs 178 crore in FY23. This impressive growth translated into a 2.68 times increase in net profit, which reached Rs 69.2 crore in the last fiscal year.

Motilal Oswal’s Recent Investments

This investment marks the fourth recent funding initiative by the Motilal Oswal Group in Indian startups. In November, the group spearheaded a substantial $350 million funding round for the rapid commerce platform Zepto and also took part in Zomato’s $1 billion fundraising via a Qualified Institutional Placement (QIP). More recently, they invested $12 million in Captain Fresh, a B2B seafood startup poised for an IPO.