Arthan Finance, a non-banking finance company focused on lending to micro and small businesses, has raised Rs 50 crore in equity funding from Incofin India Progress Fund and the Michael and Susan Dell Foundation.
The proceeds will help the Mumbai-based startup grow its assets under management, expand its geographical footprint, and invest in artificial intelligence and machine learning-based underwriting systems, the company said on Monday. These technological enhancements are expected to improve its ability to assess credit risk and tailor financial solutions for the unorganised sector.
To date, Arthan Finance has raised around Rs 83 crore. In 2022, it secured its first institutional funding of $2.5 million from the Michael and Susan Dell Foundation and other angel investors including economist Ajit Ranade and veteran finance professional Sunil Gulati.
Founded by Kunal Mehta and Pravash Dash, Arthan Finance offers growth capital to self-employed micro enterprises in small towns in India. It currently operates in Maharashtra, Odisha, Andhra Pradesh, and Telangana.
“Incofin’s investment will unlock transformative growth for Arthan Finance in bringing tech-enabled and 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,” Dash said.
Arthan Finance claims to have disbursed over Rs 500 crore to more than 20,000 borrowers, with loan amounts ranging from Rs 2,000 to Rs 20 lakhs.
