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BusinessArthan Finance Secures INR 50 Crore Funding to Accelerate MSME Lending

Arthan Finance Secures INR 50 Crore Funding to Accelerate MSME Lending


In a development that will boost access to credit for micro, small and medium enterprises across , NBFC Arthan has raised Rs 50 crore in its latest funding round led by impact investment firm Incofin India Progress Fund. The Series B funding also saw participation from philanthropic organisation Michael & Susan Dell Foundation.

Founded in 2018 by industry veterans Kunal Mehta, Pravash Dash and Gowrisankar Rao Alamanda, Arthan Finance provides collateral-free loans to self-employed entrepreneurs operating micro and small businesses in Tier 2, 3 and 4 towns across states like Maharashtra, Odisha, Andhra Pradesh and Telangana. So far, the NBFC has facilitated loans worth Rs 500 crore benefiting over 20,000 micro-borrowers, with individual loan sizes ranging from Rs 20,000 to Rs 20 lakh.

Mehta, Managing Director at Arthan Finance, said the fresh capital will be deployed to scale up operations and deepen outreach in current geographies. “A part of the funds will also be invested in upgrading our tech platforms that power automated credit underwriting. This will help us efficiently process higher loan volumes while continuing to serve the underbanked micro-enterprise segment,” he elaborated.

Arthan Finance currently manages assets worth Rs 130 crore. Considering the widespread financial inclusion challenge that still persists for grassroots entrepreneurs, the company aims to significantly scale this portfolio in the coming years. Since inception, Arthan Finance has raised a total equity funding of Rs 83 crore including the ongoing Series B round, in addition to debt capital of over Rs 300 crore from 17 lenders.

Industry analysts point out that the MSME lending space in India is primed for exponential growth in this decade, projected to reach Rs 1.3 trillion by 2030. This funding injection into Arthan Finance comes at an opportune time for them to cement their position as a leading FinTech player expanding credit access for small businesses across rural and semi-urban India.

The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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