Arthan Finance, a Mumbai-based non banking financial company (NBFC), has successfully raised INR 50 Cr in its Series B funding round.
The round was led by Incofin India Progress Fund, with significant participation from the Michael & Susan Dell Foundation.
Founded in 2018 by Kunal Mehta, Pravash Dash, and Gowrisankar Rao Alamanda, Arthan Finance specializes in providing loans to self-employed nano and micro-entrepreneurs in tier II, III, and IV cities across Maharashtra, Odisha, Andhra Pradesh, and Telangana.
The fintech startup has disbursed loans worth INR 500 Cr to over 20,000 borrowers, with loan sizes ranging from INR 2,000 to INR 20 Lakh.
The newly acquired funds will be utilized to expand Arthan Finance’s assets under management (AUM) and enhance its operational footprint across India. Currently, the company boasts an AUM of INR 130 Cr.
A portion of the capital will also be invested in developing artificial intelligence and machine learning-based underwriting systems.
These advancements aim to enhance Arthan Finance’s ability to assess credit risk, provide tailored financial solutions for the unorganized sector, and streamline its operations.
To date, Arthan Finance has raised a total of INR 83 Cr in equity investments, with backing from founders, angel investors like Sunil Gulati and Ajit Ranade, and the Michael & Susan Dell Foundation.
Additionally, the company has secured over INR 300 Cr in debt from more than 17 lenders.
