US national Steve Hardgrave is the Bengaluru-based co-founder, full-time director and executive vice-chairman of Varthana Finance, a non-banking finance company, which has till date disbursed 20,000 loans, serving 13,500 affordable private schools with a presence in 16 states and one Union territory.

Varthana’s clientele include Sristi Global School, Bengaluru, The Public School, Mumbai. New St. Maria School, Hyderabad, Sri Sathya Sai Vidya Vihar, Chennai. Newton HS School of Science, Bhubaneswar and PMD Academy, Lucknow among others.

Newspeg. In June, Varthana Finance secured a debt investment amounting to Rs.159 crore from three global investors including BlueEarth Capital, Franklin Templeton Alternative Investments, and ResponsAbility. “The investment from BlueEarth Capital and Franklin Templeton AIF will strengthen our network of affordable private schools, while the investment from ResponsAbility will support the integration of clean energy solutions by fostering sustainability and long-term resilience in school operations,” says Hardgrave.

History. An economics, International Area Studies, and business management alum of the University of California, Los Angeles and the Haas School of Business, University of California, Berkeley, Hardgrave’s professional journey began in Mexico with a seven-year stint working closely with local communities and helping launch a savings-led microfinance institution. “This experience shaped my belief that meaningful change happens when financial access is paired with a deep understanding of how underserved families build their lives and futures,” says Hardgrave.

After returning to the US, he moved into impact investing with Omidyar Network and Gray Ghost Ventures where his work focused on expanding access to capital and improving education outcomes in emerging markets. Working with mission-focused organisations across different countries helped him appreciate how the right kind of financing can empower institutions to innovate, grow and serve learners more effectively.

In 2008 Hardgrave, then part of Gray Ghost Ventures exploring school financing in India, met Brajesh Mishra, a banker in the rural microfinance and agri-business division of ICICI Bank, in a chance encounter. Five years later when Hardgrave had made up his mind on setting up a school financing business in India, he together with Brajesh invested their personal savings and organised seed funding valued at Rs.7 crore into promoting Varthana (‘growth’ in Sanskrit) Finance after acquiring Thirumeni Finance (estb. 1984), a non-banking finance company, in 2013 with a new vision to focus on affordable private schools in India.

Direct talk. “Varthana was founded with a clear mission to strengthen affordable private schools so they can deliver quality education to children from low-income families. We partner closely with school owners — many of them first-generation entrepreneurs — and provide finance to enable them to build classrooms, upgrade facilities, adopt technology and improve learning environments. We also support students directly through higher-education loans, ensuring their opportunities continue beyond school. Although affordable private schools play a crucial role in India, yet they have long been viewed as informal or too risky for formal finance. Varthana aims to change this perception by proving that these schools are capable and deserving of institutional support. Our work is defined by three strengths: deep sector focus, capability building and long-term partnership. We specialise exclusively in affordable private schools, designing loan structures that reflect their fee cycles and cash flows. Beyond financing, we connect schools to digital classrooms, STEM labs, curriculum support, solar and sanitation solutions, while our education specialists offer training and guidance,” says Hardgrave

Future plans Hardgrave’s aspiration is simple yet ambitious: to build a future where a child’s place of birth or family income never becomes a barrier to receiving quality education. “Our long-term vision is to become India’s most trusted partner for affordable education. We want to deepen our presence in tier II-III towns and rural regions where thousands of schools still lack access to reliable financing and support. We also plan to broaden the set of solutions available to schools through our ecosystem partners, helping them adopt technology, upgrade learning environments and improve daily operations in affordable and sustainable ways. At the same time, our higher education loan vertical will continue to support students as they transition into college, vocational training or other career pathways,” says Hardgrave.

– Paromita Sengupta (Bengaluru)