Arthan Finance Secures Rs 50 Crore in Series B Funding to Empower Micro Entrepreneurs
Arthan Finance, a leading NBFC focused on empowering self-employed nano and micro entrepreneurs, has secured Rs 50 crore in Series B funding from Incofin India Progress Fund and the Michael & Susan Dell Foundation. This investment marks a significant milestone in the company’s mission to revolutionize lending services for small-scale businesses through technology-driven solutions.
The funding comes at a crucial time when India’s microfinance sector is experiencing rapid digital transformation. Arthan Finance has already demonstrated impressive growth, having disbursed over Rs 500 crore to more than 20,000 borrowers across multiple states, with loan amounts ranging from Rs 2,000 to Rs 20 lakh.
With this fresh capital injection, Arthan Finance plans to accelerate its expansion plans across three key areas: growing its assets under management, expanding its geographic footprint beyond its current presence in Maharashtra, Odisha, Andhra Pradesh, and Telangana, and enhancing its AI and ML-based underwriting systems.
“This funding is crucial for our next phase of growth,” says Kunal Mehta, Founder and Director of Arthan Finance. “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.”
The company’s innovative approach to lending leverages advanced technology to assess creditworthiness and streamline loan disbursement processes. This technology-first approach has proven particularly effective in serving the traditionally underbanked segment of nano enterprises, which represents a massive market opportunity with over 11 million businesses and an estimated credit demand exceeding $25 billion.
Geeta Goel, India Country Director at Michael & Susan Dell Foundation, emphasizes the strategic importance of this investment: “The small businesses that Arthan is empowering represent a big opportunity for the future of India. Its AI and ML-based underwriting ensures efficient risk discovery and loan disbursement, catering to an acutely underbanked population.”
The investment has significant implications for India’s fintech ecosystem, particularly in the NBFC sector. Arthan’s success in combining traditional lending with advanced technology creates a blueprint for other startups looking to address the massive credit gap in India’s micro-enterprise segment. The company’s expansion plans could also create new opportunities for technology partnerships and talent acquisition in the regions it serves.
Looking ahead, Arthan Finance’s growth trajectory aligns with India’s broader financial inclusion goals. The company’s focus on technology-enabled lending, combined with its deep understanding of the micro-enterprise segment, positions it well to capture a significant share of the untapped $25 billion market opportunity in nano enterprise lending.
