Credila Financial Services and Avanse Financial Services, two leading names in India’s education loan sector, are preparing to enter the stock market with initial public offerings (IPOs). Credila aims to raise approximately ₹5,000 crore, while Avanse has set its target at ₹3,500 crore. Both IPOs will include a combination of fresh issues and offers for sale.
Credila, formerly HDFC Credila, has taken a significant step by confidentially pre-filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). Established in 2006 by Ajay and Anil Bohora, Credila was India’s first dedicated education loan provider. Currently, the company is backed by a consortium led by EQT and ChrysCapital, which acquired a 90.01% stake for ₹9,060 crore in 2024.
Avanse, supported by private equity firm Warburg Pincus, has already filed its draft prospectus with SEBI. The IPO is expected to include a fresh issue worth ₹1,000 crore and an offer for sale amounting to ₹2,500 crore.
Together, Credila and Avanse manage over ₹60,000 crore in outstanding loans, underscoring the increasing reliance on education financing in India. The education loan market has witnessed significant growth over the years, driven by rising education costs and aspirations for higher education, especially abroad.
Non-banking financial companies (NBFCs) like Credila and Avanse have filled the gap left by traditional banks, which are cautious due to high non-performing assets. These NBFCs offer quicker approvals and flexible terms, catering to the evolving needs of students and their families.
With the Indian education loan market projected to reach USD 150 billion by 2025, the IPOs of Credila and Avanse reflect the sector’s robust growth potential. This development is expected to attract significant investor interest, highlighting the critical role of education financing in shaping India’s future workforce.
