<article><a style="color: #000080;" href="http://www.dealstreetasia.com/?s=accion+venture" target="_blank">Accion Venture Lab</a>, the seed-stage investment vehicle of financial inclusion leader Accion, has exited Bangalore-based non-banking finance company (NBFC) <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=varthana" target="_blank">Varthana</a>.</article>

<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=accion+venture" target="_blank">Accion Venture Lab</a>, the seed-stage investment vehicle of financial inclusion leader Accion, has exited Bangalore-based non-banking finance company (NBFC) <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=varthana" target="_blank">Varthana</a>.
The exit value and return could not be immediately ascertained.
Varthana which is run by Thirumeni Finance Pvt Ltd, provides specialized loans and support to affordable private schools in India, promoting access to and the quality of education for India&#8217;s poor and emerging middle class.
Accion led the first institutional investment round in Varthana in May 2013. It had invested Rs 3.5 crore alongwith LGT Venture Philanthropy Foundation and <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Elevar+Equity+Advisors+Pvt.+Ltd" target="_blank">Elevar Equity Advisors Pvt. Ltd</a> for a combined 26.4 per cent stake.
&#8220;Since we invested, Varthana has been able to demonstrate the viability of its unique sector-focused approach, attract significant additional external funding, and ultimately, advance its mission to increase access to quality education for students across India,&#8221; said Vikas Raj, Accion Venture Lab managing director.
Impact-focused Unitus Capital acted as an exclusive advisor to Accion on this deal.
&#8220;Key to Accion&#8217;s approach to advancing financial inclusion is finding sustainable ways to generate both social and financial return from our investments and partnerships,&#8221; said Accion president and CEO Michael Schlein.
&#8220;Our partnership with Varthana and our successful exit from this investment demonstrate the viability of Venture Lab&#8217;s approach to supporting early-stage start-ups that expand access to financial services around the world,&#8221; he added.
As of August 2016, Varthana has supported more than 2,000 schools, 38,000 teachers, and one million students, and has disbursed more than $35 million to schools that serve lower and middle income Indians.
It operates in Karnataka, Maharashtra, Odisha, Madhya Pradesh, Tamil Nadu, Rajasthan and Gujarat.
In March this year, Varthana had raised $14 million in Series B round led by Kaizen Private Equity and Zephyr Peacock India. Elevar Equity, LGT Venture Philanthropy and Omidyar Network had also participated in the round.
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Accion Venture Lab, the seed-stage investment vehicle of financial inclusion leader Accion, has exited its over three years old investment in Varthana.

India: Accion Venture exits Bangalore-based NBFC Varthana

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India: Accion Venture exits Bangalore-based NBFC Varthana

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