The funds will be used to strengthen ARTH’s tech infrastructure, expand its offerings and build risk management systems
ARTH claims to have offered 3.5 Lakh loans and insurance covers to micro-entrepreneurs to date
The funding round saw participation from investors DEG and MIT Alumni Network
Fintech app ARTH has raised $2.5 Mn through equity financing in its Pre-Series A funding round.
The funding round saw participation from the Germany-based DEG and MIT Alumni Network.
The funds will be used to strengthen ARTH’s tech infrastructure, expand its offerings and build risk management systems.
ARTH has raised $3.5 Mn of investment to date, as shared by the startup.
Founded in 2018 by Shweta Aprameya, ARTH offers collateral-free loans to micro small and medium-sized enterprises in rural areas as well as urban cities of India. Besides, the startup offers insurance covers to micro-entrepreneurs and their families.
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Some of the working capital loans that ARTH offers include:
- ARTH Vridhi – It offers customised loans to micro-entrepreneurs along with flexible repayment options
- ARTH Sanchay- It provides financial assistance to aspiring entrepreneurs, daily wage earners and petty service providers
- ARTH Swabhimaan – It provides financial assistance up to INR 10,000 under the PM SVANidhi scheme to street vendors, who are affected by the pandemic
- ARTH Safal- It offers loans to small businesses to support their inventory requirements
- ARTH Avatar – It offers financial aid of up to INR 50,000 to essential service providers in urban cities of India
ARTH claims to have offered 3.5 Lakh loans and insurance covers to micro-entrepreneurs to date. It aims to offer financial aid to more than 1 Mn micro and small businesses.
The startup faces competition from the likes of FlexiLoans, LendingKart, LenDenClub, and Kinara Capital.
According to a report, India’s fintech market is poised to reach $1.3 Tn, growing at a CAGR of 31% by 2025.
The sector is lately buzzing with fundraising activities. Yesterday (June 6), fintech startup FlexiLoans secured a whopping $90 Mn from MAJ Invest, Fasanara Capital, the family offices of Harry Banga and Yogesh Mahansaria, as well as existing investor– Sanjay Nayar.
Earlier this month, a fintech unicorn slice bagged $50 Mn from Tiger Global, Moore Strategic Ventures, Insight Partners and GMO VenturePartners.
In May, Bengaluru-based fintech startup Innoviti was reported to be raising $10 Mn from its existing investor Netherland-based FMO.