Electronica Finance Secures USD 48 Mn in Series B from LeapFrog and Aavishkaar The funding will allow the Pune-based platform to scale up MSME credit, rooftop solar financing, and microloan-against-property (LAP) businesses.

Electronica Finance has announced the raising of USD 48 million in Series B, led by LeapFrog Investments, with participation from Aavishkaar Capital.

As per the official release, the funding will allow Electronica Finance to scale up MSME credit, rooftop solar financing, and microloan-against-property (LAP) businesses.

Shilpa Pophale, Managing Director and CEO, Electronica Finance Limited, said, "With a strong track record and deep expertise in this segment, EFL remains committed to providing technology-based solutions and financial support to MSMEs that are powering India's unprecedented economic growth. This association with two leading social impact investors can help us support small businesses to thrive and deliver resilient, low-carbon growth."

Founded in 1990, Electronica Finance offers products like machine loans, rooftop solar loans, and working capital loans, as well as micro loans against property in semi-urban and rural India, with the aim of providing sustainable financial inclusion.

It operates across 15 states through 215 branches.

The platform claims that it has grown its assets under management (AUM) by more than 3x over the past five years. AUM now stands at over USD 480 million and is projected to increase with a compound annual growth rate (CAGR) of around 35% over the next 3 years.

Stewart Langdon, Partner, LeapFrog Investments, said, "Electronica Finance Limited is transforming India's MSME sector through its sustainable financing solutions. Their funding plays a vital role in financial inclusion and climate resilience for small business owners, who have long been overlooked by banks. The benefits of these loans go beyond the small business owner, catalysing job creation and supporting households and communities."