Bengaluru-based non-banking financial company Varthana has secured a $6 million loan from WaterEquity to enhance water and sanitation infrastructure in low-cost private schools across India. The funds will support the installation of clean drinking water systems, sanitation facilities, and hygiene infrastructure in underserved school communities, particularly in peri-urban and rural areas. This initiative aims to combine educational access with improved health and well-being for students.
First Global School Finance Investment for WaterEquity
The transaction marks WaterEquity’s first global investment in the school finance sector, reflecting its strategy to scale access to water and sanitation in emerging markets. The US-based asset manager, co-founded by actor Matt Damon and Gary White of Water.org, has previously focused on microfinance institutions, housing finance companies, and small enterprises. With operations spanning 23 countries, WaterEquity has raised more than $470 million in committed capital since 2016.
Impact on School Communities
According to Varthana, the funds will enable the installation of safe drinking water systems, sanitation facilities, and hygiene infrastructure in schools that often lack basic WASH (Water, Sanitation, and Hygiene) amenities. The initiative is expected to improve student attendance and learning outcomes while promoting healthier school environments. Special emphasis will be placed on girls’ access to dignified sanitation, a factor closely linked to retention and overall academic performance.
Varthana’s Role and Reach
Founded in 2013, Varthana operates across 16 states and union territories through 40 branches and 150 spokes. The NBFC provides loans to affordable private schools and also offers education loans for higher and vocational studies. By integrating WASH improvements into its financing model, Varthana aims to ensure that quality education is delivered alongside safe and healthy learning conditions.
Statements from Leadership
Steve Hardgrave, Wholetime Director and Executive Vice Chairman at Varthana, highlighted the importance of safe water and sanitation as essential to creating conducive learning environments. “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,” he said. Amit Agarwal, Head of South and Central Asia for Financial Institutions at WaterEquity, added that the investment represents a new lending product in the firm’s portfolio, tailored specifically for schools.
Alignment with Global Goals
The partnership is expected to contribute to improved health outcomes, higher school attendance, and support India’s progress toward the United Nations’ Sustainable Development Goal on water and sanitation. By channeling private capital into public-good infrastructure, the initiative underscores the role of financial institutions in addressing social challenges. Both Varthana and WaterEquity emphasized that scaling WASH facilities is a critical step toward inclusive and equitable education.
This collaboration highlights an innovative approach to combining education finance with social impact, particularly in under-resourced schools. With WaterEquity’s support, Varthana is poised to expand access to safe water and sanitation, enhancing both student health and learning outcomes. The initiative sets a precedent for integrating essential infrastructure improvements into educational lending models in India and beyond.