Mumbai, June 10, 2024 – Arthan Finance, a leading Non-Banking Financial Company (NBFC) specializing in loans for self-employed nano and micro entrepreneurs, has raised INR 50 crores from marquee investors such as Incofin India Progress Fund and the Michael & Susan Dell Foundation, a returning investor. This fresh fund infusion will boost the company’s expansion and technological progress.
This funding round will help Arthan Finance grow its Assets Under Management (AUM), expand its geographic footprint, and invest in advanced AI and ML-based underwriting systems. These technological enhancements will improve the company’s ability to assess credit risk and tailor financial solutions for the unorganized sector, further streamlining operations and enhancing customer experience.
To date, Arthan Finance has raised approximately INR 83 crores. Previous funding rounds saw participation from the founders, angel investors, and the Michael & Susan Dell Foundation.
Kunal Mehta, Founder and Director of Arthan Finance, stated, “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.”
Arthan Finance currently operates in Maharashtra, Odisha, Andhra Pradesh, and Telangana, providing growth capital to self-employed nano and micro enterprises in Tier II, III, and IV cities. The company has disbursed over INR 500 crores to more than 20,000 borrowers, with loan amounts ranging from INR 2,000 to INR 20 lakhs.
Pravash Dash, Founder and Chief Executive Officer of Arthan Finance, said, “Incofin’s investment will unlock transformative growth for Arthan Finance in bringing tech-enabled & affordable credit to underserved Indian MSMEs. Our investors’ extensive experience in impact investing aligns with Arthan’s vision and will help us capitalise on immense market opportunities to reshape the MSME lending landscape in India.”
Aditya Bhandari, Partner and Regional Director, Asia Equity at Incofin, said, “Arthan has tremendous potential to demonstrate how social impact can be driven through an enviable blend of technology and inclusive financial services. We believe Arthan is well-positioned to be at the forefront of India’s digital-led MSME financing revolution.”
Geeta Goel, India Country Director, Michael & Susan Dell Foundation, added, “Arthan Finance’s innovative approach combines operational excellence, community presence through phygital outreach and cutting-edge technology. Their AI and ML-based underwriting ensures efficient risk discovery and loan disbursement, catering to an acutely underbanked population of more than 11 million nano enterprises with an estimated credit demand of more than $50 billion The small businesses that Arthan is empowering represent a big opportunity for the future of India.”
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About Arthan Finance:
Arthan Finance provides financial support to underserved markets, fostering entrepreneurship, and driving economic growth in India. With over 17 lenders backing and more than INR 300 crores raised in debt, Arthan Finance is transforming credit access for small businesses and nano enterprises. The company is present across 35+ branches in Maharashtra, Odisha, Andhra Pradesh, and Telangana.
Read more: (https://arthan.finance/)
About Incofin India Progress Fund (IPF):
IPF is a private equity fund (SEBI registered Category II AIF), established in 2021 to provide growth equity capital to promising entrepreneurs. The investment in Arthan is its fifth investment in the financial inclusion space.
Read more: (https://incofin.com/india/, https://incofin.com/)
About the Michael & Susan Dell Foundation:
The Michael & Susan Dell Foundation is dedicated to transforming the lives of children living in urban poverty around the world. With offices in Austin, TX, New Delhi, India, and Cape Town, South Africa, the Dell Foundation funds programs that foster high-quality public education and childhood health and improve the economic stability of the families we serve. To date, the foundation has committed $2.4 billion to global children’s issues and community initiatives to accelerate opportunity for families.
Read more: (https://www.dell.org/)
