Auxilo Finserve, a specialized Non-Banking Financial Corporation (NBFC) with a primary focus on education finance, has received INR 50 crore in structured debt financing from Motilal Oswal. The use of Non-Convertible Debentures (NCDs) to support this investment demonstrates Motilal Oswal’s strategic dedication to improving capital flows within India’s fintech infrastructure and education financing ecosystem. Will be
Investment Structuring and Terms
Auxilo Finserve issued 5,000 NCDs to Motilal Oswal Finvest Limited, securing INR 50 crore in loan capital. Two tranches, each with a different maturity period and yield structure, make up the issuance:
Series I: 2,500 NCDs, 2-year maturity, coupon rate of 9.7% annually.
Series II: 2,500 NCDs, 3-year maturity, coupon rate of 9.8% annually.
By increasing Auxilo’s liquidity reserves, this capital infusion will improve the company’s ability to provide education loans to both individual students and institutional borrowers. The deal strengthens Auxilo’s financial stability in an extremely competitive sector.
Corporate Profile: Auxilo Finserve
Founded in 2017, Auxilo Finserve operates as an RBI-registered NBFC with a dedicated focus on education financing. The firm provides structured financial products tailored for students pursuing higher education both domestically and internationally, as well as for academic institutions seeking infrastructure development. Auxilo’s portfolio encompasses funding for tuition fees, pre-visa disbursements, airfare, accommodation, and other ancillary academic costs. Positioned as an Education Ecosystem Enabler, Auxilo aims to mitigate systemic financial constraints in education through specialized lending mechanisms.
Financial Performance and Competitive Positioning
Since its inception, Auxilo has raised in excess of USD 100 million through a mix of equity and debt instruments. The company has exhibited exponential financial growth, with revenue surging 100% year-over-year, escalating from INR 178 crore in FY23 to INR 356 crore in FY24. Concurrently, net income has expanded 2.68 times, reaching INR 69.2 crore in FY24.
Operating within a highly competitive sector, Auxilo contends with prominent education-financing firms such as Grayquest, Avanse Financial, Financepeer, Propelld, Leap Finance, and Eduvanz. The firm’s sustained financial momentum, combined with targeted institutional investments, consolidates its standing as a formidable entity in the education financing domain.
Motilal Oswal’s Broader Investment Trajectory
Motilal Oswal continues to deploy capital in high-growth enterprises that align with India’s evolving financial and educational landscapes. Recent investment activity includes:
- November 2024 – Spearheaded a $350 million capital infusion for Zepto, a quick-commerce platform.
- December 2024 – Participated in Zomato’s $1 billion Qualified Institutional Placement (QIP) round.
- Early 2025 – Committed $12 million in pre-IPO funding for B2B seafood startup Captain Fresh.
Conclusion
Motilal Oswal’s investment in Auxilo Finserve underscores the increasing significance of structured education financing in India’s broader economic framework. As demand for specialized lending in education continues to escalate, institutional capital allocation will serve as a catalyst for the development of innovative financial models that facilitate access to higher education. This investment not only reinforces Auxilo’s market presence but also signifies Motilal Oswal’s sustained engagement in high-impact, growth-oriented sectors.