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INR10,000 crore HDFC Credila deal: Why PE funds are upbeat on the education-loan market

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Synopsis
Last month, HDFC Bank concluded the sale of 90% stake in HDFC Credila to private-equity firms BPEA EQT and ChrysCapital for INR9,553 crore, making it one of the largest PE deals in the Indian market. So, how is the sector poised to grow and what gives NBFCs an edge over banks in the education-loan space?

How would you feel if the company you founded 13 years ago fetched a valuation of over INR4,000 crore at the time of your exit (in December 2019)? Great, right? But what if the same company is now valued more than INR10,000 crore? The founder Ajay Bohora feels proud but does not have any FOMO. “While the market has expanded, only two-three out of 10 applicants for education loan for foreign studies, manage to get it. This indicates that the