Exclusive: Motilal Oswal invests in edtech-focused NBFC Auxilo

Education-focused non-banking financial corporation (NBFC) Auxilo has raised Rs 50 crore in debt from Motilal Oswal.

Auxilo allotted 5,000 Non-Convertible Debentures (NCDs) to Motilal Oswal Finvest Limited at a face value of Rs 1,00,000 each aggregating to Rs 50 crore in Series I and Series II of 2,500 NCDs each.

The Series I debentures have a tenure of 2 years with a rate of interest of 9.7% per annum while the Series II debentures carry 9.8% annual interest with a tenure of 3 years, according to the filing.

Education-dedicated NBFC Auxilo Finserve provides education loans to students for higher studies in India and abroad and to educational institutes for infrastructure modernization. Its educational loans include all the expenses related to the course including classroom expenditures, pre-visa approvals, air-fares, et al.

Auxilo has raised over $100 million across equity and debt since its inception and it competes with well-funded firms such as Grayquest, Avanse Financial, Financepeer, Propelld, Leap Finance, and Eduvanz. 

Auxilo recorded a 100% year-on-year growth in its revenue to Rs 356 crore in FY24 from Rs 178 crore in FY23. On the back of strong growth, its bottom line jumped 2.68X to Rs 69.2 crore in the previous fiscal (FY24).

This is the fourth recent investment by the Motilal Oswal Group in Indian startups. In November, it led a $350 million funding round for the quick commerce platform Zepto and participated in Zomato’s $1 billion fundraising through a Qualified Institutional Placement (QIP). More recently, it invested $12 million in the IPO-bound B2B seafood startup Captain Fresh.