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NBFC firm Arthan Finance raises Rs 50Cr in a Series B round

ISN Team
New Update
Arthan Finance

Kunal Mehta (Founder and Director) & Pravash Dash (Founder and CEO), Arthan Finance

Non-banking financial company (NBFC) Arthan Finance has raised Rs 50 crore in a Series B funding round led by the Incofin India Progress Fund and the Michael and Susan Dell Foundation. 

The round brings its all-time raise to Rs 83 crore ($10 million), with previous rounds seeing participation from the founders, angel investors, and the Michael & Susan Dell Foundation.

What is the purpose of fundraising?

The company has announced that the proceeds from this funding round will be utilized to enhance its technological capabilities and support its expansion plans.


Specifically, the funds will help grow Arthan Finance's Assets Under Management (AUM), broaden its geographic reach, and invest in advanced AI and ML-based underwriting systems.

“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,” said Kunal Mehta, Founder and Director of Arthan Finance.

Specializing in loans for micro-entrepreneurs

Arthan Finance, founded by Kunal Mehta, is a new-age lending tech NBFC specializing in loans for self-employed nano and micro-entrepreneurs.

The startup currently operates in Maharashtra, Odisha, Andhra Pradesh, and Telangana, providing growth capital to self-employed nano and micro enterprises in tier II, III, and IV cities.

It claims to have disbursed over Rs 500 crore to more than 20,000 borrowers, with loan amounts ranging from Rs 2,000 to Rs 20 lakhs.

Aiming to invest in AI and ML

Arthan Finance aims to invest significantly in AI and ML-based underwriting systems with the newly raised funds.

These technological advancements are expected to ensure 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 $25 billion.