Indian School finds $6 m in Gray Matters

HYDERABAD: Private institutional lender to education sector, Indian School Finance Company (ISFC) has raised $6 million of Series-A funds from social venture capital firm Gray Matters Capital. Impact investment bank Unitus Capital was the advisor for the transaction. ISFC plans to use this money to increase its loan ticket size and reach out to more clients in the country.

The company primarily lends to private schools, pre-schools, colleges and institutes, coaching centres and teachers. "Our company focuses on funding the education segment’s much needed capital to build infrastructure," Neeraj Sharma, chief executive at ISFC, told ET. "Current equity infusion will provide the necessary boost required by us to leapfrog to the next level of growth."

Founded in 2008, the company has distributed more than 3,000 loans across 13 states and will expand to two more states by the end of this year. "India has a huge base of affordable private schools, which presents a huge opportunity to scale. With the absence of significant competition, growth is possible both by going deep and going wide," said Robert Pattillo, founder of Atlanta-based Gray Matters Capital. Profitable since 2012, ISFC previously raised capital from Gray Ghost Ventures and Caspian Advisors.