• Friday, April 12, 2024

Business

Abu Dhabi’s Mubadala makes maiden investment in India financial services

The Emirati state-owned holding company has made the investment in Avanse, an Indian non-banking financial company that provides student loans. 

Khaldoun al-Mubarak, managing director and Group CEO of the Mubadala Investment Company, speaks at a panel session during the World Government Summit in Dubai on February 12, 2024. (Photo by RYAN LIM/AFP via Getty Images)

By: Twinkle Roy

MUBADALA, an Emirati state-owned holding company that serves as one of the sovereign wealth funds of Abu Dhabi, has invested in Avanse Financial Services, an Indian non-banking financial company that provides loans to students. This is happening through the Alpha Investment Company, a Mubadala affiliate, and participation from Avendus PE Investment Advisors Private Ltd, Gulf News reported.

The funds will help Avanse to improve its position in the ‘rapidly evolving education financing segment’ and ‘achieving sustained profitable growth’, the report added.

This marks Mubadala’s maiden venture into India’s financial services sector and forms a pivotal component of the strategy to amplify the company’s presence in Asia, with aspirations to double their exposure by 2030.

“Avanse will continue to enable young generations of Indian students to fulfil their aspirations,” Luca Molinari, head of Asia and Financial Services at Mubadala was quoted as saying by the report. 

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Avanse is positioned as the second-largest non-banking financial company (NBFC) in the Indian education finance domain. Additionally, the company has extended growth and working capital support to educational institutions across India.

“We are delighted to welcome our new strategic investors, who share a common vision of strengthening the education financing segment in India,” said Amit Gainda, managing director and CEO of Avanse, according to Gulf News.

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Current stakeholders in Avanse, a company that has provided loans to over 400,000 students, comprise Warburg Pincus, Kedaara Capital, and the International Finance Corporation.

In February, Mubadala revealed its plan to invest in India’s Manipal Health Enterprises hospital networks.

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