Monday, July 15, 2024

Arthan Finance Raises Rs 50 Crore in Series B Funding Round

Share post:

Non-banking financial company (NBFC) Arthan Finance has secured Rs 50 crore in a Series B funding round. The funding was led by the Incofin India Progress Fund and the Michael and Susan Dell Foundation. This round brings Arthan Finance’s total funding to Rs 83 crore (approximately $10 million). Previous funding rounds saw participation from the founders, angel investors, and the Michael & Susan Dell Foundation.

Purpose of Fundraising

The company plans to use the funds to enhance its technological capabilities and support its expansion plans. The funding will help grow Arthan Finance’s Assets Under Management (AUM), broaden its geographic reach, and invest in advanced AI and ML-based underwriting systems. 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.”

Specializing in Loans for Micro-Entrepreneurs

Arthan Finance, founded by Kunal Mehta, is a modern lending tech NBFC that specializes in providing loans to self-employed nano and micro-entrepreneurs. The company currently operates in Maharashtra, Odisha, Andhra Pradesh, and Telangana. It focuses on providing growth capital to self-employed nano and micro enterprises in tier II, III, and IV cities. 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.

Symbol of the Indian Rupee and Bundles of currency notes to represent Arthan Finance Series B funding.

Aiming to Invest in AI and ML

With the newly raised funds, Arthan Finance aims to invest significantly in AI and ML-based underwriting systems. These technological advancements are expected to ensure efficient risk assessment and loan disbursement. The company targets an underbanked population of more than 11 million nano enterprises, which have an estimated credit demand of over $25 billion. By leveraging AI and ML, Arthan Finance seeks to cater to this substantial market efficiently.

In summary, Arthan Finance’s recent Rs 50 crore funding will enable it to expand its technological infrastructure and geographical footprint. This strategic move aims to support more micro and small enterprises, particularly in underserved regions, by providing them with the necessary financial resources and advanced technological solutions.

Related articles

Collegedekho Raises $9 Million in Funding from Existing Investors

Collegedekho, a startup based in Gurugram offering higher education services, has reportedly raised $9 million in an extended...

Edtech upGrad Raises Rs 287 Crore in Debt from EvolutionX

Mumbai-based edtech unicorn upGrad has successfully raised Rs 287.5 crore (about $35 million) in debt funding from EvolutionX....

Swarajya Raises Rs 3.6 Crore to Fund Expansion and Growth

Swarajya, one of India’s oldest print publications and now a leading digital platform, has announced a new funding...

Go Zero Raises $1.5M to Expand Ice Cream Brand

Ice cream brand Go Zero has successfully raised $1.5 million in a follow-on pre-Series A funding round. This...