New Delhi, 09 January, 2026: Varthana Finance, a non-banking financial company (NBFC) focused on affordable education in India, has secured a USD 6 million loan from WaterEquity, a global asset manager dedicated exclusively to water and sanitation investments. The funding will be used to expand access to safe water, sanitation, and hygiene (WASH) infrastructure in underserved school communities across the country.
According to the company, the loan proceeds will be deployed through school improvement loans that integrate WASH facilities. These include access to clean drinking water, improved sanitation infrastructure, and the promotion of healthy hygiene practices in affordable private schools, particularly in peri-urban and rural regions.
The investment aligns with Varthana’s education-focused financing model and its stated objective of creating sustainable social impact. With an extensive presence across underserved geographies, the company aims to scale the adoption of WASH infrastructure in schools catering to low-income communities.
WaterEquity, which has previously invested in microfinance institutions, housing finance companies, and small and medium enterprises, said this transaction marks its entry into school financing in India. The partnership expands WaterEquity’s impact portfolio by introducing WASH-linked school lending as a new product category.
Steve Hardgrave, Wholetime Director and Executive Vice Chairman, Varthana, said, “Access to safe water and sanitation is fundamental to creating a healthy and conducive learning environment. 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.”
Amit Agarwal, Head of South and Central Asia for Financial Institutions at WaterEquity, said, “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. 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.”
He further noted that WaterEquity’s existing portfolio generates water and sanitation impact across 23 countries through lending to households and enterprises, and added that the organisation is “pleased to support Varthana in expanding sustainable school infrastructure and improving access to water and sanitation in underserved communities.”
The initiative is expected to contribute to better public health outcomes, improved school attendance, and progress towards India’s commitments under the United Nations Sustainable Development Goal 6, which focuses on ensuring the availability and sustainable management of water and sanitation for all.
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