Auxilo Secures Debt Funding for Education Loans

Auxilo, an education-centric non-banking financial company (NBFC), has successfully obtained Rs 225 crore (approximately $25.5 million) in debt financing from Neo Group, Nuvama Wealth, Dezerv, and The South Indian Bank. Earlier this year, in February, Motilal Oswal had invested Rs 50 crore into Auxilo through a debt round, as reported exclusively by Startup Superb.

According to a filing with the Registrar of Companies (RoC), Auxilo’s board has issued 22,500 non-convertible debentures (NCDs) at a face value of Rs 1,00,000 each to raise the aforementioned sum. The debt round was led by Neo Group with an investment of Rs 100 crore ($11.36 million), while Nuvama Wealth and Dezerv contributed Rs 50 crore each, and The South Indian Bank added Rs 25 crore.

The issued debentures bear an interest rate of 9.7% per annum with a term of three years, while those allocated to The South Indian Bank come with a 10% annual interest rate.

About Auxilo and Its Loan Offerings

Founded in 2016, Auxilo facilitates education loans for students pursuing higher education both in India and internationally, along with loans for educational institutions aimed at modernising infrastructure. The educational loans provided cover a wide range of expenses related to courses, including classroom costs, pre-visa approvals, and airfares.

According to various sources from startup data intelligence platforms, the Mumbai-based company has raised over $200 million in equity and debt to date, attracting investments from Tata Capital, Balrampur Chini Mills, ICICI Bank, and others.

Financial Growth of Auxilo

For the fiscal year ending March 2025, Auxilo’s operating revenue saw a remarkable rise of nearly 50%, increasing to Rs 528 crore from Rs 357 crore in FY24. During the same timeframe, the company’s profit surged by 62%, reaching Rs 112 crore.

Overview of the Edtech Sector

The edtech sector has encountered challenges in the post-pandemic landscape after garnering close to $6 billion during the peak years. Data compiled from various sources indicates that from 2024 to July 2025, edtech startups attracted $1.2 billion, with over 35 percent (about $424 million) directed towards companies specializing in education loans. This trend indicates that although overall investor interest in edtech may have waned, the demand for edu-fintech platforms assisting families in managing escalating education costs remains robust.

For further insights into sector trends, refer to Startup Superb’s report regarding the current state of edtech and the sustained performance of loan enablers.