MICROCAPITAL BRIEF: C-Quadrat Dual Return Vision Microfinance Fund Invests in Varthana, Funder of Educational Institutions in India

The Dual Return Vision Microfinance Fund, which is managed by C-Quadrat Asset Management (AM), recently invested an undisclosed amount of funds in Varthana, an India-based lender to “affordable” private schools, with the aim of improving educational access for children whose families have low incomes. C-Quadrat AM is a member of the Austria-based C-Quadrat Investment Group.

Varthana lends to primary and secondary schools for infrastructure, teacher training and working capital. It also offers management and educational consultancy to school owners. As of 2019, Varthana has secured and unsecured loans outstanding to 3,500 schools. These loans may range up to INR 20 million (USD 290,000) with payback periods as long as eight years. The company also offers insurance services and unsecured loans to students for higher education. Varthana’s investors include Elevar Equity, LGT Impact and the Omidyar Network.

C-Quadrat AM disbursed the funds during April, along with loans to – and bond purchases from – unidentified microfinance institutions in Costa Rica, Ecuador, Indonesia, Kazakhstan, Myanmar and Tajikistan.

As of April 2019, the Dual Return Vision Microfinance and Dual Return Vision Microfinance-Local Currency sub-funds hold assets valued at an aggregate of USD 605 million. The C-Quadrat Investment Group, which was founded in 1991, manages EUR 10 billion (USD 12 billion) in assets as of 2017. It has operations in 20 countries in Eurasia.

Sources and Additional Resources

Information provided directly to MicroCapital by C-Quadrat AM

Varthana homepage
https://varthana.com

Background on C-Quadrat Investment Group
https://www.c-quadrat.com/en/company/history/

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