Arthan Finance Secures Rs 50 Crore in Series B Funding to Fuel Expansion and Technological Advancements

Arthan Finance, a non-banking financial company (NBFC) specializing in loans for self-employed nano and micro entrepreneurs, has successfully raised Rs 50 crore in Series B funding. This funding round saw participation from the Incofin India Progress Fund and the Michael & Susan Dell Foundation. The fresh capital will be deployed to grow Arthan Finance's assets under management, expand its geographic footprint, and invest in advanced AI and ML-based underwriting systems.

Kunal Mehta, Founder and Director of Arthan Finance, emphasized the significance of this funding for the company's growth trajectory. “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. Our partnership with esteemed investors such as Incofin and the Michael & Susan Dell Foundation reinforces our mission to drive financial inclusion in India,” Mehta stated.

Arthan Finance currently operates in Maharashtra, Odisha, Andhra Pradesh, and Telangana, providing essential growth capital to self-employed nano and micro enterprises in small towns. Since its inception, the company has disbursed over Rs 500 crore to more than 20,000 borrowers, with loan amounts ranging from Rs 2,000 to Rs 20 lakh. The firm's AI and ML-based underwriting systems ensure efficient risk assessment and swift loan disbursement, addressing the financial needs of an acutely underbanked population of more than 11 million nano enterprises with an estimated credit demand exceeding $25 billion.

Geeta Goel, India Country Director at the Michael & Susan Dell Foundation, highlighted the potential impact of supporting small businesses through Arthan Finance. "The small businesses that Arthan is empowering represent a big opportunity for the future of India," Goel added.

Arthan Finance's strategic expansion and technological advancements underscore its commitment to driving financial inclusion and supporting the growth of micro and small enterprises across India.