- Arthan Finance secures Rs50 cr in series B funding from Incofin India Progress Fund and the Michael & Susan Dell Foundation
- Funding to drive expansion, enhance technological progress, grow Assets Under Management, and invest in AI and ML-based underwriting systems
- Previous funding rounds saw participation from founders, angel investors, and the Michael & Susan Dell Foundation
- Arthan Finance operates in Maharashtra, Odisha, Andhra Pradesh, and Telangana, providing growth capital to self-employed nano and micro enterprises
- Incofin’s investment to bring tech-enabled & affordable credit to underserved Indian MSMEs, reshaping the MSME lending landscape in India
Arthan Finance Secures Rs50 Cr in Series B Funding
Arthan Finance, a leading LendingTech Non-Banking Financial Company (NBFC), recently announced a significant milestone in its growth journey by securing Rs50 crore in series B funding. This funding round was led by prominent investors, including Incofin India Progress Fund and the Michael & Susan Dell Foundation, a returning investor. The infusion of fresh capital is set to drive the company’s expansion plans and propel its technological advancements to new heights.
Driving Expansion and Technological Advancement
The Rs50 crore raised in the series B funding will play a pivotal role in boosting Arthan Finance’s growth trajectory. The company is strategically focusing on increasing its Assets Under Management (AUM), expanding its geographical footprint, and investing in cutting-edge AI and ML-based underwriting systems. These technological enhancements are aimed at enhancing the company’s ability to evaluate credit risk effectively and offer tailored financial solutions to the unorganized sector, thereby streamlining operations and elevating the overall customer experience.
Kunal Mehta, Founder and Director of Arthan Finance, emphasized the importance of this funding round by stating, “This funding is crucial for our next phase of growth. We are dedicated to enhancing our technological capabilities and extending our reach to cater to more micro and small enterprises in underserved regions. Our collaboration with esteemed investors such as Incofin and the Michael & Susan Dell Foundation reaffirms our commitment to driving financial inclusion in India.”
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Expanding Reach and Impact
Arthan Finance currently operates in key regions such as Maharashtra, Odisha, Andhra Pradesh, and Telangana, providing essential growth capital to self-employed nano and micro entrepreneurs in Tier II, III, and IV cities. The company has disbursed over Rs 500 crores to more than 20,000 borrowers, offering loan amounts ranging from Rs 2,000 to Rs 20 lakh. This significant reach underscores Arthan Finance’s dedication to supporting the entrepreneurial aspirations of individuals in underserved markets.
Pravash Dash, Founder and Chief Executive Officer of Arthan Finance, highlighted the transformative potential of Incofin’s investment in empowering Indian MSMEs with tech-enabled and affordable credit solutions. He expressed confidence in the investors’ expertise in impact investing aligning with Arthan’s vision to reshape the MSME lending landscape in India.
Industry Recognition and Future Prospects
Aditya Bhandari, Partner and Regional Director, Asia Equity at Incofin, commended Arthan Finance’s potential to drive social impact through a blend of technology and inclusive financial services. He emphasized the company’s position as a frontrunner in India’s digital-led MSME financing revolution, underlining the immense opportunities for growth and innovation in the sector.
Geeta Goel, India Country Director, Michael & Susan Dell Foundation, praised Arthan Finance’s innovative approach, combining operational excellence, community outreach, and advanced technology. The utilization of AI and ML-based underwriting processes ensures efficient risk assessment and loan disbursal, catering to the vast population of underbanked nano enterprises in India. The foundation recognized the significant opportunity presented by Arthan Finance in empowering small businesses and driving economic growth in the country.
Arthan Finance’s successful series B funding marks a significant milestone in the company’s journey towards driving financial inclusion and empowering underserved entrepreneurs. With a strategic focus on technological innovation and expanding reach, Arthan Finance is well-positioned to make a lasting impact on the MSME lending landscape in India.
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