The non-banking financial company, Avanse Financial Services has reported a profit after tax (PAT) of ₹342.4Cr in FY24 making it the second-most profitable firm in its sector.
Founded in 2013, the company’s operating revenue surged 74% to ₹1,727Cr in FY24 from Rs.989.6Cr in the previous financial year. Global Equity Investor, Warburg Pincus holds the majority stake in Avanse Financial Services. The firm filed its Draft Red Herring Prospectus (DRHP) last week for an Initial Public Offering (IPO) worth ₹3,500Cr.
Mumbai-Headquartered, The company was founded by Amit Gainda. The firm is funded by 7 investors, Mubadala and Avendus Capital being the latest investors. The latest funding of ₹1,000 crore was announced in March 2024 in the equity stage. Recently, the firm has appointed Vikrant Gandhi as its new Chief Financial Officer.
FY23-24 Report
Avanse Financial Services experienced a net profit of ₹157.7Cr in FY23-24. The firm has a valuation of $1.2B as of March 22, 2024, and is ranked 2nd among its 53 competitors. Hdfc Credila is the first as per the Tracxn score. Its interest income growth rate was 61.5% YoY to ₹1,443.7Cr. The company’s overall revenue increased by 57.2% to ₹1,728.8Cr in FY24 from ₹990.2Cr in 2023.
Currently, Avanse has a vast network of students enrolled in 1550+ educational institutions spanning 49 countries. In FY24, the overall distribution network of the firm stood at 1500+ which includes education counselors, targeted marketplaces, and other loan intermediaries partnered with the non-banking financial company.
Avanse expenditure grew 63% this year to ₹1,269.5Cr, which was ₹778.9Cr in FY23. The finance costs surged to 62% to ₹875.6Cr. This includes interest spending on debt securities, securitization, and lease liabilities.
The firm spent a total of ₹140.9Cr in employee benefits which rose 48.6% YoY. The company has a total count of 606 employees as of March 2024 and reasoned bonuses and increases in salaries as a reason for the growth in spending.
Avance Financial Services further plans to increase its capital base to induce expansion in the market by using the latest funding.
