Varthana secures USD 6 million loan from WaterEquity to expand access to safe water and sanitation in underserved schools across India

 Varthana Finance, a leading NBFC in the affordable education sector in India, has secured a USD 6 million loan from WaterEquity, a global asset manager exclusively focused on water and sanitation. The funding aims to expand access to safe water and sanitation in underserved school communities across India. The proceeds will be deployed exclusively toward school improvement loans that incorporate water, sanitation, and hygiene (WASH) infrastructure, enabling affordable private schools to provide clean drinking water, improved sanitation facilities, and promote healthy hygiene practices for students.

This investment aligns with Varthana’s commitment to creating sustainable impact through education-focused financing. With deep geographical reach across peri-urban and rural India, Varthana is well-positioned to scale access to water and sanitation infrastructure in affordable private schools. WaterEquity brings sectoral expertise through prior investments in microfinance institutions, housing finance companies, and SMEs. This transaction introduces school financing to WaterEquity's India portfolio, expanding its support of long-term impact. 

“Access to safe water and sanitation is fundamental to creating a healthy and conducive learning environment,” said Steve Hardgrave, Wholetime Director and Executive Vice Chairman, Varthana. “By integrating WASH improvements into our school financing model, we are ensuring that quality education goes hand in hand with the well-being of students. Our collaboration with WaterEquity helps us deepen our commitment to sustainable school ecosystems, especially in communities that need it most.” 

“Children spend a significant portion of their day at school, and access to safe, dignified WASH facilities is essential to improving attendance and learning outcomes - particularly for girls,” said Amit Agarwal, Head of South and Central Asia for Financial Institutions, WaterEquity. “Varthana’s extensive network of affordable private schools presents a strong platform to scale these improvements. This transaction marks WaterEquity’s first global investment in the school finance sector adding WASH lending for schools as a new product in our debt portfolio. That portfolio currently generates water and sanitation impact in 23 countries through households and enterprises loan products from Microfinance Institutions, Banks, Housing Finance Companies and other non-Banking Financial Institutions. We are pleased to support Varthana in expanding sustainable school infrastructure and improving access to water and sanitation in underserved communities.” 

This initiative is expected to contribute to improved public health outcomes, increased school attendance, and India’s progress toward the United Nations Sustainable Development Goal 6, ensuring availability and sustainable management of water and sanitation for all. By combining WaterEquity’s expertise in impact investing and Varthana’s on-ground reach and financial acumen, this collaboration seeks  to help bridge the gap that often prevents vulnerable communities from accessing basic water and sanitation facilities.