NBFC Avanti Finance Nets $14.2 Mn To Expand Loan Book

SUMMARY

The NBFC plans to use the fresh capital to enhance its loan book, bolster deeptech capabilities for product innovation and expand across rural and urban regions

Avanti Finance claims to have raised a total of $80 Mn in equity funding till date

The funding round also saw participation from existing investors IDH Farmfit Fund, NRJN Family Trust, Rabo Partnerships and select HNIs (High net worth individuals).

Bengaluru-based non-banking financial company (NBFC) Avanti Finance has secured $14.2 Mn (around INR 120 Cr) in a Series B extension round from Dia Vikas Capital, along with participation from existing investors IDH Farmfit Fund, NRJN Family Trust, Rabo Partnerships and select HNIs (High net worth individuals).

The NBFC plans to use the fresh capital to enhance its loan book, bolster deeptech capabilities for product innovation and expand across rural and urban regions.

Avanti Finance claims to have raised a total of $80 Mn in equity funding till date.

“We are delighted to have Dia Vikas Capital partner in Avanti’s journey to usher in a next-gen financial inclusion platform that is focused on creating sustainable livelihoods for the next 100 million households that are un/underserved,” said Rahul Gupta, CEO of Avanti Finance.

Set up in 2016 by former chairman of Tata Sons Ratan Tata, Infosys cofounder Nandan Nilekani and economist Vijay Kelkar, Avanti Finance has over 180 customised loan products to cater to different types of livelihood streams and income flows.

The NBFC claims to have served 9,00,000 low income households with an AUM (assets under management) of INR 1,640 crores. Among these 90% of its borrowers are women.

Its distribution network consisting of smaller financial institutions and fintech partners collectively serve customers at more than 700 branches spread across 27 states, as per its statement.

Avanti Finance raised $24 Mn from Rabo Partnerships, IDH Farmfit Fund and existing investors Oikocredit and Nandan Nilekani’s family office NRJN Trust among others in April last year.

Digital lending has become a lucrative business opportunity for financial services providers and fintech players. According to Inc42’s ‘State of Indian Fintech Report Q4 2023’, the lending tech opportunity in the country is expected to reach $1.3 Tn by 2030.

Recently, Jaipur-based NBFC Finova Capital secured $135 Mn in a Series E funding round from Avataar Venture Partners and Sofina and Madison India Capital among others.