Avanse: The B2C Education Financing Space without Boundaries

Amit Gainda, CEO
Headquartered in Mumbai, Avanse Financial Services Limited is a new age, fast growing education focused NBFC committed to fulfilling academic dreams of talented young students. Avanse is a part of the WGC group, a financial service conglomerate, with an AUM of approximately 22 billion and presence across lending, insurance and Asset management. Avanse is an associate company of DHFL, one of India’s leading Housing Finance Company. The International Finance Corporation(IFC), an arm of the World Bank holds 20 percent equity stake in Avanse.

Avanse’s vibrant team of over 200 employees and strong, diverse leadership team of 200+ years’ experience has helped Avanse grow. Today, Avanse has over 400 partnerships with educational counsellors across India. Avanse has funded over 10,000 students across 6000 courses in 1900 institutes across India and over 45 countries. In the last 4 years, the brand’s growth has been phenomenal with a CAGR of over 150 percent. Key strategic pillars for Avanse’s growth have been customer-centricity, process excellence, product innovation, brand positioning, people driven approach, digitization, partnerships and alliances.

Avanse operates in the B2B and B2C verticals which are growing rapidly. The B2C vertical finances students while the B2B vertical caters to the growth capital needs of schools/institutes specially the K12 segment, a huge market of more than 15 lakh schools.

Technology and Digitization
Avanse has made significant investments in the fields of Artificial Intelligence(AI)and Machine Learning(ML)considering their profound utility in the education financing sector for factors such as course quality, pedigree and potential employ ability of the institute. Through AI, Avanse provides loans to 'New to Credit' customers thus enhancing financial access. Avanse also facilitates straight through Loan processing with automated score cards using Machine Learning. In this digital era, Avanse has made significant progress towards digitisation of systems and processes to cater to the growing millennial customer base.

Since inception, Avanse has launched several industry-first, customer-centric initiatives to create great value for its consumer
base. This has helped the company grow to become one of the leading education loan providers in a short span of time.

• Avanse provides attractive offerings such as 100 percent funding, funding beyond tuition fees (covering visa, travel and stay expenses), customized solutions, limitless loans and instant sanctions for select programs/universities.

Avanse has made significant progress towards digitisation of systems and processes to cater to the growing millennial customer base

• Unlike other lenders, Avanse has transitioned from a mortgage driven to a student led approach providing education finance access to all students.

• Avanse provides special education loan offers to girl students with benefits including a 12 year term as against the available 10 year term, 25 percent discount on processing fee and a 1 percent reduction on Rate of Interest.

• Recognizing the flourishing need for unconventional courses, Avanse has developed a thorough evaluation system to offer unique funding solutions and repayment options for new age courses.

• Avanse recently partnered with a Fintech startup Early Salary to introduce a first-of-its-kind digital, school education financing solution called 'FeES' to simplify the school fee payment process for parents through instant credit facility and convenient EMIs.

Future Plans
Avanse is transforming to become a diversified, customer-centric NBFC focused on consumer, MSME and commercial businesses with a leadership position in Education financing. The company is expanding its reach across the country and will be funding a wider range of educational programs. While Avanse has already taken the first step towards funding school education fees, Avanse further plans to focus on funding growth capital needs of higher education institutes offering courses with high employ ability potential. Avanse is enhancing operational capabilities and processes with an aim of improving customer experience and operational productivity through technology. Digitization and technology are critical growth enablers for Avanse in all of its businesses.