This new capital injection will be used to expand customer reach, improve student financing options, integrate technological infrastructure into business processes and strengthen the company’s institutional lending segment.
Since its creation six years ago, Auxilo Finserve has disbursed loans to more than 12,000 students and has a loan portfolio of approximately ₹3.1 billion rupees.
Neeraj Saxena, Managing Director and CEO of Auxilo Finserve, told CNBC-TV18 that with this fundraise, the company plans to expand its loan portfolio to ₹8.000-₹10,000 crore over the next three years.
Saxena also highlighted the company’s impressive financial performance, noting: “Last year, our profit after tax was close to ₹70 crores. This year, we will record close to ₹“110 crore profit.”
He highlighted that despite the growth of the sector, education financing remains one of the least penetrated segments within the broader financial landscape.
“Even after NBFCs have come into play and specialised NBFCs have emerged, penetration is still around 28-29%. There is still room for growth, especially as rising rates at institutions, both domestically and internationally, are making loans increasingly necessary for students to fulfil their dreams.”
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One of Auxilo’s key differentiators is its unique approach to risk assessment. Unlike traditional banks, which typically treat education loans similarly to personal or mortgage loans, Auxilo places a strong emphasis on a student’s educational merit rather than their parents’ financial background.
“We focus on education as a benchmark, rather than parents’ finances, and that is what sets us apart,” Saxena said.
This student-centric approach has allowed Auxilo to serve a diverse student base, offering larger loan amounts to those pursuing high-demand fields like STEM, particularly in countries like the United States.
The size of the company’s loan ticket varies by country, averaging around ₹30 lakh. The focus on merit and future earning potential enables Auxilo Finserve to offer larger loans, particularly for students pursuing STEM degrees abroad.
The United States, in particular, is a major driver of Auxilo Finserve’s business, as a significant portion of funding goes to students studying there. However, the company also supports students from Canada, the United Kingdom, Ireland, Australia and New Zealand.
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