Arthan Finance, which lends to micro and small businesses, on Monday announced a Rs 50 crore fundraise from Incofin India Progress Fund and the Michael and Susan Dell Foundation.
The fresh funding from Incofin and the foundation, a returning investor, will boost the company's expansion and technological progress, according to a statement. The company, which specializes in loans for self-employed nano and micro entrepreneurs, has disbursed over Rs 500 crore to 20,000 borrowers in Maharashtra, Odisha, Andhra Pradesh, and Telangana with loan amounts ranging from Rs 2,000 to Rs 20 lakh.
The funding will help Arthan Finance grow its assets under management (AUM), expand geographic footprint, and invest in advanced AI and ML-based underwriting systems, the statement said.
Advertisement
It has raised Rs 83 crore till now, and the past funders include founders and angel investors apart from the Michael & Susan Dell Foundation. Its founder and director Kunal Mehta termed the funding as crucial for the company's next phase of growth.
"Arthan has tremendous potential to demonstrate how social impact can be driven through an enviable blend of technology and inclusive financial services," Incofin's partner Aditya Bhandari said.
Arthan Finance Private Limited was established on December 11, 2018, with the purpose of engaging in lending activities as a Non-Banking Finance Company (NBFC) authorized by the Reserve Bank of India (RBI). The company's primary objective is to supplement traditional banking services by offering capital to self-employed entrepreneurs, MSMEs, and consumers in India.
Advertisement
Specializing in loans for self-employed nano and micro entrepreneurs, Arthan operates in Maharashtra, Odisha, Andhra Pradesh, and Telangana, focusing on providing growth capital to such enterprises in tier II, III, and IV cities. With loans ranging from Rs 2,000 to Rs 20 lakhs, the company claims to have disbursed over Rs 500 crore to over 20,000 borrowers.
(With inputs from PTI)
Just one email a week