Indian School Finance Company (ISFC), a private institutional lender to the education sector, has today announced that it has raised $6 million in its Series A round of funding from Gray Matters Capital.
With the money raised by the company, it is now planning to spend money to increase its loan ticket size and reach out to more clients in the country.
Commenting about this, Neeraj Sharma, CEO, ISFC, said,
Our company focusses on funding the education segment’s much-needed capital to build infrastructure. Current equity infusion will provide the necessary boost required by us to leapfrog to the next level of growth.
The company was founded in 2008, and claims to have distributed more than 3,000 loans across 13 states and will expand to two more states by the end of this year. It primarily lends to private schools, pre-schools, colleges and institutes, coaching centres and teachers.
It is a non-banking finance company which is engaged in the business of lending to educational institutions and entrepreneurs managing such institutions. It aims to assist schools and other education institutions in capacity-building through infrastructure improvements, thereby enabling students to access quality education.
The firm claims to have been profitable since 2012. Indian School Finance Company had previously raised capital from Gray Ghost Ventures and Caspian Advisors.
Robert Pattillo, founder of Atlanta-based Gray Matters Capital, said,
India has a huge base of affordable private schools, which presents a huge opportunity to scale. With the absence of significant competition, growth is possible both by going deep and going wide.
Gray Matters Capital is an impact investment firm, founded by Bob Pattillo in Atlanta in 2006. It actively invests in sustainable, replicable business models that benefit underserved populations in developing countries.