Exclusive: Avanse Strengthens Board Ahead Of IPO, Appoints New Independent Director

Education loan-focussed NBFC Avanse Financial Services has appointed former Bajaj Finserv COO Rakesh Bhatt as an independent director of the company ahead of launching its INR 3,500 Cr initial public offering (IPO).

The board of Avanse passed a special resolution on April 29 to appoint Bhatt as an independent director of the fintech company, as per its regulatory filing sourced from the Registrar of Companies (RoC).

“Looking at the growth trajectory and in order to further strengthen the board, it was proposed to onboard one more independent director,” Avanse said in its regulatory disclosure.

Bhatt is the founder and CEO of vertical SaaS startup Rahi Platform Technologies. Founded in August 2024, Rahi is building a unified product-specific digital platform to enable seamless customer acquisition and life-cycle servicing for financial institutions.

Before launching his own venture, Bhatt served as CEO of Bajaj Markets and COO of Bajaj Finserv. Additionally, he also previously served on the board of Bajaj Finserv Direct, Bajaj Finance, AIG Consumer Finance and Apnaloan.com, among others.

The appointment comes as Avanse Financial Services gears up for a mainboard public listing. In October last year, markets regulator SEBI for an IPO. The proposed issue and an offer for the sale (OFS) component of INR 2,500 Cr.

Founded in 2013, Avanse offers a full stack of education finance services with products ranging from education loans to students to infrastructure loans to educational institutions. It offers loans to Indian students and professionals looking to study abroad. The NBFC also provides collateral-baked loans to educational institutions in the country.

The company is backed by investors like Warburg Pincus, International Finance Corporation (IFC), Kedaara Capital and Mubadala Investment Company.

Promoter Olive Vine Investment, which held a 58.38% stake in Avanse as of July 2024, will offload shares worth up to INR 1,758 Cr in the OFS. IFC and Kedaara Capital will also sell shares worth INR 342 Cr and INR 400 Cr, respectively.

In its DRHP, Avanse said it will use the IPO proceeds to increase its capital base and meet its future capital requirements arising out of the growth of its loan portfolio and asset base.

During the fiscal year ended March 2024 (FY24), Avanse Financial Services reported a net profit of INR 342.4 Cr, more than double the INR 157.7 Cr profit it registered a year ago. Operating revenue rocketed 75% to INR 1,727 Cr during the year under review from INR 989.6 Cr in FY23.

More than six months after securing SEBI’s approval for its IPO, Avanse is yet to file its red herring prospectus (RHP). Meanwhile, new-age tech IPO season is in full bloom, with a string of fintech startups readying for a public listing soon. Ahead of their India listing, Razorpay and PhonePe converted into public entities in April.

Earlier this week, Pine Labs ahead of its mega $1 Bn IPO, expected to be launched in the second half of 2025. Several other fintech companies, including Moneyview, Groww, Navi, Kissht, PayU, among others, are also stitching up plans for an IPO.

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