PhysicsWallah Loan Portfolio Sale to Auxilo
The move: PhysicsWallah loan portfolio sale
PhysicsWallah’s wholly owned subsidiary FinZ Finance has agreed to sell a ₹95.79 Cr loan portfolio to education-focused NBFC Auxilo Finserve. FinZ signed the deed of assignment on October 3, with the transition of the loans and associated borrowers expected to conclude within 60 days.
The consideration is ₹95.79 Cr. The transaction represents a substantial portion of FinZ’s loan book and is expected to result in the partial or piecemeal closure of its lending operations.
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What PhysicsWallah does
PhysicsWallah is an edtech company focused on education. Through FinZ Finance, it had also moved into direct student lending, but it plans to facilitate financing through established, regulated third-party NBFCs while focusing on its core education business.
Auxilo Finserve, founded in 2017, is an RBI-registered NBFC that provides education loans and financing to students and other stakeholders in the education sector.
“As the principal business activity of FinZ Finance is lending, the proposed transaction constitutes a substantial reduction in its lending operations and is expected to result in partial/piecemeal closure of its lending operations,” the company said.
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