Both the companies however, did not disclose the financial details of the transaction.
Avanse Financial Services is an education focused NBFC. It is an associate enterprise of WGC, a diversified financial services group and housing finance firm DHFL.
Avanse is also backed by the International Finance Corporation (IFC), which has 20 per cent equity stake in the company.
Commenting on the development, WGC Chairman Kapil Wadhawan said: "The transaction with Warburg Pincus will allow the company to further strengthen their position in the education financing industry. This sale also unlocks the latent value within the WGC Group while reinstating our immediate and long-term focus on our core business."
Ernst & Young LLP (EY) and Prime Research & Advisory Limited were the financial advisors to the company and the sellers on the transaction. Shardul Amarchand Mangaldas & Co acted as the legal advisors to the sellers and company on this transaction.
DHFL further said that it has entered into a share purchase agreement with the Warburg Pincus Group, Avanse and the other sellers including WGC.
The proposed transaction is subject to applicable regulatory and other approvals and certain other conditions.
In a separate filing, DHFL said it is undertaking corporate re-organisation within the company and announced resignation of its Company Secretary and Compliance Officer.
"Santosh Sharma (currently the CFO) will assume a new role as the Head - Corporate Strategy with effect from March 16, 2019. The Accounts and Finance function which was currently supervised by the Chief Financial Officer, shall now be supervised by Vice President- Finance and Vice President- Accounts of the company, respectively," the company added.
DHFL's Company Secretary and Compliance Officer Niti Arya has resigned from the company with effect from March 15, 2019.
Meanwhile, DHFL's independent director V K Chopra had also resigned.
DHFL is under the scanner of various authorities following allegations of siphoning off Rs 31,000 crore out of total bank loans of Rs 97,000 crore through layers of shell companies.