Arthan Finance Bags INR 50 Cr in Series B to Boost MSME Lending With the raised funds, the Mumbai-based platform aims to boost the company's expansion and technological progress.
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Lendingtech non-banking financial company (NBFC) Arthan Finance has announced the raising of INR 50 crore from investors such as Incofin India Progress Fund and the Michael and Susan Dell Foundation.
About INR 83 crore has been raised by Arthan Finance to date. The Michael and Susan Dell Foundation, angel investors, and the founders have all participated in previous investment rounds.
As per the official release, the fresh funding will help Arthan Finance grow its Assets Under Management (AUM), expand its geographic footprint, and invest in advanced AI and ML-based underwriting systems.
Kunal Mehta, Founder and Director of Arthan Finance, said, "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 and Susan Dell Foundation reinforces our mission to drive financial inclusion in India."
Founded in 2018 by Kunal Mehta, Arthan Finance provides financial support to underserved markets, fosters entrepreneurship, and drives economic growth in India.
With over 17 lenders backing and more than INR 300 crore raised in debt, Arthan Finance is aiming to provide credit access for small businesses and nano enterprises in Tier II, III, and IV cities.
Pravash Dash, Founder and Chief Executive Officer of Arthan Finance, added, "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."
The company says it has more than 35 branches in Telangana, Maharashtra, Odisha, and Andhra Pradesh.
The platform claims that it has disbursed over INR 500 crore to more than 20,000 borrowers, with loan amounts ranging from INR 2,000 to INR 20 lakhs.
"Its AI and ML-based underwriting ensures efficient risk discovery and loan disbursement, catering to an acutely underbanked population of more than 11 million nano enterprises with an estimated credit demand of more than USD 25 billion. The small businesses that Arthan is empowering represent a big opportunity for the future of India," Geeta Goel, India Country Director, Michael and Susan Dell Foundation, added.
