Exclusive: Edu-fintech company Auxilo raises Rs 225 Cr debt

Auxilo, education-focused non-banking financial company (NBFC), has secured Rs 225 crore (around $25.5 million) in debt funding from Neo Group, Nuvama Wealth, Dezerv and The South Indian Bank.

Earlier this year in February, Motilal Oswal invested Rs 50 crore in Auxilo through a debt round, as exclusively reported by Entrackr.

The Auxilo’s board has issued 22,500 non-convertible debentures (NCDs) at a face value of Rs 1,00,000 each to raise the above-mentioned sum, according to its filing with the Registrar of Companies (RoC).

Neo Group led the debt round with a Rs 100 crore ($11.36 million) investment, while Nuvama Wealth and Dezerv contributed Rs 50 crore each, and The South Indian Bank added Rs 25 crore.

The debentures carry an interest rate of 9.7% per annum with a three-year tenure, while those issued to The South Indian Bank come at a 10% annual interest rate.

Founded in 2016, Auxilo provides education loans to students for higher studies in India and abroad and to educational institutes for infrastructure modernisation. Its educational loans include all the expenses related to the course including classroom expenditures, pre-visa approvals, and air-fares.

According to startup data intelligence platform TheKredible, the Mumbai-based firm has raised over $200 million in equity and debt to date from Tata Capital, Balrampur Chini Mills, ICICI Bank, and others.

For the fiscal year ended March 2025, Auxilo’s operating revenue rose nearly 50% to Rs 528 crore from Rs 357 crore in FY24. During the same period, the company’s profit surged 62% to Rs 112 crore.

The edtech sector has struggled in the post-pandemic period after raising nearly $6 billion during the boom years. As per data compiled by TheKredible, from 2024 to July 2025, edtech startups secured $1.2 billion, with over 35 percent of it, about $424 million, going to companies offering education loans. This shows that while overall investor interest in edtech has cooled, demand remains strong for edu-fintech platforms that help families manage rising education costs.

For a deeper understanding of sector trends, see Entrackr’s report: Edtech is struggling, but loan enablers are not.