Auxilo

Auxilo Finserve is a RBI-registered Non-Banking Financial Company (NBFC) specializing in education financing. The company was established to bridge the financial gap for students and educational institutions across India, with a mission to make quality education accessible through innovative, tech-driven lending solutions. Auxilo operates in the education finance sector, serving both domestic and international markets. The company leverages a paperless loan process, advanced risk assessment models and a student-led lending approach that considers academic merit and university reputation. This specialization enables Auxilo to manage risk more effectively and deliver a seamless customer experience.

 Core Products and Services

• Student Loans: Comprehensive financing for higher education in India and abroad, covering tuition, living expenses, travel, and related costs. Auxilo offers both secured and unsecured loans, with 100% funding options and flexible repayment tenures up to 12 years.

• Institutional Loans: Infrastructure and working capital loans for schools, colleges, universities, and vocational institutes. These products support capacity expansion, facility upgrades, and operational needs.

• Skill Development & Executive Education Loans: Financing for short-term courses, skill development, and executive programs, addressing the growing demand for upskilling and professional advancement.

• Digital Lending Platform: Paperless application and approval process, quick sanctions and pre-admission loans, enhancing accessibility and efficiency for borrowers.

• IndiaEd (Launched May 2025): Interest-free tuition fee financing for school and college students, enabling instant disbursals to partnered institutions and supporting broader access to education

Business Model & Revenue Streams

• Interest Income: The primary revenue driver, with interest earned on student and institutional loan disbursements accounting for 94.8% of total revenue in FY24. The average yield on the loan portfolio is 13–14%.

• Processing and Service Fees: Additional income from loan processing, insurance commissions, forex income, and co-lending arrangements. Processing fees typically range from 1–1.5% of the loan amount.

• Geographic Reach: Pan-India presence with a focus on education hubs and metro cities, complemented by a digital platform for nationwide accessibility.

Customer Segmentation

• B2C: Students and families seeking education loans for undergraduate, postgraduate and professional courses in India and abroad.

• B2B: Educational institutions (schools, colleges, universities) requiring infrastructure and working capital financing.

Top Clients & Partnerships

• Student Segment: Over 12,000 students funded across 1,100+ universities and institutes in 30+ countries, with a strong focus on STEM courses (80% of overseas education loans).

• Institutional Clients: More than 170 educational institutions financed for infrastructure and operational needs, including schools, colleges and vocational centers.

• Strategic Investors: LeapFrog Investments, Trifecta Leaders Fund I, Xponentia Opportunities Fund II, Tata Capital Growth Fund II, ICICI Bank, ELME Advisors, and Balrampur Chini Mills—providing capital, strategic guidance and sector expertise.

• Partnerships: Collaborations with educational consultants, aggregators, and digital platforms to streamline loan applications and expand reach. Partnerships with financial institutions and NBFCs for diversified funding sources (private sector banks contributed 51.46% of funding as of June 2024)

Future Outlook & Strategic Priorities

• Aggressive expansion of the student loan portfolio, targeting a 30–40% increase in the loan book in FY25.

• Launch and scaling of IndiaEd, the interest-free tuition fee financing platform, to capture the K-12 and college segments (reflecting recent market trends).

• Geographic expansion with plans to add 10–15 new branches and deepen digital penetration for pan-India coverage.

• Continued investment in technology, AI-driven risk assessment, and customer experience to streamline operations and enhance scalability.

• Product and sector concentration risk, given Auxilo’s exclusive focus on education financing.