Summary:

  • Arthan Finance is a contemporary lending technology NBFC focused on offering loans to self-employed nano and micro-entrepreneurs.

  • The round is led by Incofin India Progress Fund and the Michael and Susan Dell Foundation

  • The newly raised capital is earmarked for enhancing the company’s expansion and technological advancements.

Non-banking financial company (NBFC) Arthan Finance has successfully secured $6 million in its latest funding round, attracting investments from notable backers such as the Incofin India Progress Fund and the Michael and Susan Dell Foundation.

With this infusion, Arthan Finance has now accumulated a total of Rs 83 crore ($10 million) in funding to date. The previous funding rounds saw participation from the company’s founders, various angel investors, and the Michael & Susan Dell Foundation.

The newly raised capital is earmarked for enhancing the company’s expansion and technological advancements. Specifically, Arthan Finance aims to increase its Assets Under Management (AUM), broaden its geographic reach, and invest in sophisticated artificial intelligence (AI) and machine learning (ML)-based underwriting systems. This strategic investment is expected to solidify the company’s position in the market and drive sustainable growth.

Arthan Finance Foundation whose foundation was laid by Kunal Mehta, is a contemporary lending technology NBFC focused on offering loans to self-employed nano and micro-entrepreneurs.
.The company focuses on offering growth capital to businesses operating in tier II, III, and IV cities across India. Arthan Finance’s current operational footprint spans Maharashtra, Odisha, Andhra Pradesh, and Telangana.

Since its inception, Arthan Finance has made significant strides in its mission to empower small businesses. The company asserts that it has disbursed over Rs 500 crore to more than 20,000 borrowers. The loan amounts range from Rs 2,000 to Rs 20 lakhs, catering to a diverse array of financial needs among its clientele.

Arthan Finance’s business model is centred around addressing the financial needs of self-employed individuals and small enterprises that often struggle to secure funding from traditional banking institutions. By leveraging advanced technology and data-driven approaches, the company aims to streamline the lending process, reduce risk, and provide accessible financial services to underserved markets.

The infusion of funds from reputable investors like the Incofin India Progress Fund and the Michael and Susan Dell Foundation not only provides the necessary capital for growth but also underscores the confidence these investors have in Arthan Finance’s business model and growth potential. This backing is expected to facilitate the company’s efforts to scale its operations and introduce innovative financial products tailored to the needs of small business owners.

Arthan Finance’s commitment to utilizing AI and ML technologies for underwriting is a testament to its forward-thinking approach. By integrating these advanced technologies, the company aims to enhance its credit assessment capabilities, thereby improving the accuracy and efficiency of its lending decisions. This technological edge is anticipated to provide a competitive advantage in the rapidly evolving financial services sector.

In addition to expanding its technological capabilities, Arthan Finance plans to extend its reach to more regions, thereby enabling more small businesses to access crucial growth capital. The company’s strategy includes entering new markets and increasing its presence in existing ones, which will help it tap into a larger customer base and further its mission of financial inclusion.

In summary, the recent funding round marks a significant milestone for Arthan Finance, providing the resources needed to fuel its growth and innovation initiatives. With a strong foundation of investor support and a clear vision for the future, Arthan Finance is well-positioned to continue making a meaningful impact in the lives of small business owners across India