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Auxilo Finserve, a leading education-focused non-banking financial company (NBFC), is on an ambitious growth trajectory after securing a $30 million funding round led by Leapfrog Investments. The round also saw participation from existing investors, Trifecta Leaders Fund-I and Xponentia Opportunities Fund-II. This fresh infusion of capital will be directed towards expanding customer reach, enhancing student funding options, integrating technological infrastructure across business processes, and bolstering the company’s institutional lending segment. Since its inception six years ago, Auxilo Finserve has disbursed loans to over 12,000 students and has a loan book of approximately ₹3,100 crore.

Auxilo Finserve targets ₹8,000-₹10,000 crore loan book with new $30 million funding

Private equity firm LeapFrog Investments has led a ₹279-crore funding round in Mumbai-based Auxilo Finserve that gives education loans to students aspiring to study in India and abroad. LeapFrog made the investment from its ₹5,000-crore fund, which focuses on financial inclusion and healthcare opportunities in India, marking its first investment in the country's education finance sector. The global investment firm infused $30 million into the company, with an additional $3-4 million coming in from Auxilo'sexisting investors Trifecta Leaders Fund-I and Xponentia Opportunities Fund-II. The capital infusion will help Auxilo expand its student loan portfolio.

Auxilo Finserve secures ₹279 crore funding

Auxilo Finserve Pvt reported a 49.74% increase in net profit to ₹31.97 crore for the quarter ended June 2025, up from ₹21.35 crore in June 2024. Revenue from sales climbed 48.19% to ₹164.05 crore, while Profit Before Tax (PBT) rose 49% to ₹42.91 crore. Despite a slight dip in operating profit margin (OPM) to 79.44%, the company’s Profit Before Depreciation and Tax (PBDT) grew 48% to reach ₹44.88 crore.

Auxilo Finserve Pvt standalone net profit rises 49.74% in the June 2025 quarter

Auxilo is highly concentrated in overseas education (~96%), primarily across the US (44%), UK (25%), and Canada (16%). While a new $100,000 US H-1B fee poses a long-term risk, the near-term impact is low as STEM students can repay during OPT and remain exempt via "change of status." To mitigate this risk, Auxilo proactively cut US disbursements from 49.4% to 14.4% (YoY) as of Q2FY26.




Auxilo’s AUM hit ₹4,875.60 cr in Sept-2025, driven by 47% FY25 growth. AUM outpaces disbursements due to long tenors and capitalized interest. The portfolio is 96.4% higher education, with 72.5% in STEM. While moderately scaled, Auxilo is expanding market share through diverse sourcing across seven cities.


Auxilo achieved a 78% AUM CAGR through FY25, with 75% of loans under moratorium. High student quality drives 15% prepayments, shortening tenors to 5–6 years. Asset quality is robust (GNPA 0.55%), supported by "student-led" underwriting and mandatory co-borrowers, though it remains sensitive to job market shifts in the US and Canada.


Auxilo is funded by 44 lenders, primarily through term loans (82%) and NCDs (11%). Banks provide 78% of capital, led by private (47%) and public (31%) sectors. While long-term loans create ALM mismatches, 15% prepayments shorten actual tenors to 5–6 years, bolstering liquidity. Stability is further supported by a 337% LCR, regular equity infusions, and refinancing.



The issuer has made timely interest payments.

Neeraj Saxena, MD & CEO

Promoted by Akash Bhanshali (Enam Holdings) and BCML, Auxilo raised ₹769 cr in FY24-25 from LeapFrog, Trifecta, and Xponentia, diluting the promoter stake to 59.98% (29.99% each) as of Sept-2025. Despite this, promoters retain control, having infused ~₹350 cr total. A combined stake below 51% is a key rating monitorable.


As of September 30, 2025, Auxilo’s capitalization remains strong with a CAR of 30.03% and Tier-I of 29.81%. A ₹300 cr infusion and internal accruals boosted TNW to ₹1,448.34 cr, while growth-led borrowing increased gearing to 2.68x (up from 2.39x in FY24). CareEdge Ratings expects capitalization to stay healthy, with gearing maintained below 4.5x.


Since 2017, Auxilo’s ROTA grew to 2.73% (FY25) via scale, though it dipped to 2.42% (H1FY26) as margins narrowed. Credit costs rose slightly to 0.36% (H1FY26) but remain low. A key risk is reliance on capitalized (non-cash) interest, which may cause volatility if disbursements slow. Future growth depends on fund-raising costs and operational efficiency.


Security Name: 9.90% Auxilo Finserve Private Limited 29 Nov 2026

ISIN: INE605Y07130

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