Varthana: Transforming Affordable Learning
Location: India
Date: Wed Apr 10
India, with one of the youngest populations in the world, is suffering from a crisis in primary and secondary education. A majority of K-12 students in India attends public schools that are struggling with poor infrastructure, disengaged
teachers and outdated curricula. A majority of students drop out before they reach high school.
Affordable Private Schools, a Needed Solution
Location: India
Date: Wed Apr 10
Low cost private schools have emerged as an important alternative for students from low-income families over the last few years. Private schools serve about one- third of India's student population and over 94% of students in private schools are enrolled in what's known as Affordable Private Schools (APS'). School tuitions at APS' are anywhere from $3 to $75 making them an affordable option for lower-income families. These schools do not receive funding from the government nor are they eligible for loans from banks.
Varthana Fills the Critical Gap in School Financing
Location: India
Date: Wed Apr 10
Varthana is a company that addresses a critical gap in financing and operational efficiency for APS'. Founded in 2013 by Brajesh Mishra and Steve Hardgrave, Varthana is one of the only two companies in India that works towards improving access to quality education in low-income communities. Varthana addresses the needs of APS' by offering project & infrastructure loans and customized solutions for improved education delivery. Schools can apply for loans ranging from $1,500 to $400,000.
Varthana Makes a Difference
Location: India
Date: Wed Apr 10
Underprivileged students who cannot afford traditional private schools have access to improved education and opportunities through APS' funded by Varthana
Educators who wish to work in safe work environments and receive fair compensation can make a larger impact Education entrepreneurs and
channels can scale their businesses to benefit low income communities
innovators who had limited access to funding from traditional financing
Improving School Infrastructure & Teaching Methodologies
Location: India
Date: Wed Apr 10
Varthana loans are used to improve the physical structure of APS' such as building student restrooms, invest in teacher training, and introduce new learning methods and teaching resources like whiteboards, microscopes, and computers into the classrooms.
Elevating Girls, Elevating India
Location: India
Date: Wed Apr 10
Low income Indian families tend to allocate a higher portion of their limited budgets to male children due to outdated and harmful social norms. Girl child enrollment in public schools is also typically lower than that of boys due to the absence of inadequate sanitation facilities in these schools. Varthana's partner schools provide a safe and nurturing environment and help educate more than a million girls across the country. Additionally, a majority of the Varthana partner schools are run by women entrepreneurs. Many of these women leaders are former educators who had limited access to formal financing options.
Zephyr Peacock Partners with Varthana
Location: India
Date: Wed Apr 10
With support from Zephyr Peacock, Varthana's customers doubled to 3,500. ZP helped Varthana founders Steve and Brajesh (pictured right with the ZP team) to develop value-add services for its school clients in addition to their original loan offering. These differentiating advisory services like the Beyond Loans program improved education and business outcomes effectively, which strengthened Varthana's relationship with customers and act as a barrier to entry for future competitors.
Partnership Across India
Location: India
Date: Wed Apr 10
Varthana works with schools in 28 locations across India with over 84,000 teachers employed. More than 3,500 schools have benefited from a Varthana loan across 12 states. The Company has enabled millions of children across India to access affordable quality education in their local schools.
Beyond Loans Program
Location: India
Date: Wed Apr 10
Varthana, through its 'Beyond Loans' program, provides assessment services and third party educational solutions to its clients- the APS'. The Schools Transformation Program and the Integrated School Accelerator Program are two such solutions that help improve educational and financial outcomes.
Transforming Students and Teachers
Location: India
Date: Wed Apr 10
The Schools Transformation Program (STP) is built on an assessment framework, beginning with students. Based on the assessment, STP assists teachers and staff to design and bring to life customized lesson plans, conduct on-site observations and training all aimed to improve student outcomes. The Integrated School Accelerator Program (ISAP) advice school leaders to make better financial and leadership decisions, to accelerate school growth and performance at speed and scale.
Varthana's Technology & Productivity Given a Boost
Location: India
Date: Wed Apr 10
Zephyr-Peacock helped to recruit a Chief Technology Officer for Varthana who oversaw the implementation of a new software system that centralized credit approval processes and improved business process efficiencies. ZP also helped deploy Salesforce automation tools that enhanced productivity and customer engagement. By the end of ZP's investment period the number of students enrolled at Varthana's schools tripled to 2.5 million.
Fund Divestment
Location: India
Date: Wed Apr 10
In April 2018, Zephyr Peacock divested its entire stake in Varthana.
The transaction was part of a US$ 55 Million investment by a consortium of investors. The competitive bidding process for the Varthana investment was anticipated and is validation of the attractive exit options for the businesses that are targeted in Zephyr Peacock's portfolio.
