By Inc42 Media
The Mumbai-based fintech startup said it will deploy the fresh capital to grow its assets under management and expand its footprint in India
Founded by Kunal Mehta, Pravash Dash and Gowrisankar rao Alamanda in 2018, Arthan Finance provides loans to self-employed nano and micro entrepreneurs in Tier II, III and IV cities
Arthan Finance will also use a part of the fresh proceeds to invest in artificial intelligence and machine learning-based underwriting systems
Non banking financial company (NBFC) Arthan Finance has raised INR 50 Cr ($5.98 Mn) as part of its Series B funding round led by Incofin India Progress Fund.
The round also saw participation from Michael & Susan Dell Foundation, which has previously backed Indian startups such as Kaleidofin, OnlineTyari and ConveGenius among others.
The Mumbai-based fintech startup will deploy the fresh capital to grow its assets under management and expand footprint in India.
Founded by Kunal Mehta, Pravash Dash and Gowrisankar rao Alamanda in 2018, Arthan Finance provides loans to self-employed nano and micro entrepreneurs in tier II, III and IV cities across Maharashtra, Odisha, Andhra Pradesh and Telangana.
The lending tech startup claims to have provided INR 500 Cr worth of loans to more than 20,000 borrowers, with the loan size varying from INR 2,000 to INR 20 Lakh.
However, Mehta did not comment on the valuation of Arthan Finance after this deal. Although he said currently the company has AUM of INR 130 Cr.
Arthan Finance will also use a part of the fresh proceeds to invest in artificial intelligence and machine learning-based underwriting systems.
This will help the company improve its ability to assess credit risk, tailor financial solutions for the unorganised sector and streamline operations.
“This funding is crucial for our next phase of growth. We are committed to enhancing our technological capabilities and expanding our reach to serve more micro and small enterprises in underserved regions. Our partnership with esteemed investors such as Incofin and the Michael & Susan Dell Foundation reinforces our mission to drive financial inclusion in India,” Mehta said.
Arthan Finance has raised INR 83 Cr in equity investment till date with backing from founders, angel investors such as Sunil Gulati and Ajit Ranade and Michael and Susan Dell Foundation.
Further, it has raised over INR 300 Cr in debt from more than 17 lenders till date, the statement added.
According to Inc42’s ‘State of Indian Fintech Report Q4 2023’, the lending tech opportunity in the country is expected to reach $1.3 Tn by 2030.
In May, Edgro, the non-banking lending arm of fintech startup Propelld, raised $25 Mn in debt from lenders such as Credit Saison India, AU Small Finance Bank, InCred Financial Services and Northern Arc Capital.
Prior to that, in January, NBFC Namdev Finvest raised $15 Mn from British International Investment and LC Nueva AIF, with participation from existing backer Incofin India Progress Fund.