Avanti Finance, a non-banking finance company committed to financial inclusion, raised $14.2 million in equity funding. The funding came from Dia Vikas Capital, a social investor, and existing supporters like IDH Farmfit Fund, NRJN Family Trust, Rabo Partnerships, and several high-net-worth individuals. Earlier backers of the company include The Bill and Melinda Gates Foundation, impact investor OikoCredit, and Japan’s financial services giant Nomura.
In April last year, the company secured $24 million, bringing its total funding to $80 million.
Rahul Gupta, the CEO of Avanti Finance, shared that this growth capital will be used to expand the company’s loan book. He added that they will enhance their technology to offer a better borrowing experience for customers. Additionally, Avanti plans to strengthen its presence across rural and urban markets.
Launched in 2018, Avanti Finance focuses on offering small loans for working capital to microenterprises. It also serves urban gig workers. The company has partnered with smaller financial institutions, agritech firms, and fintech companies to reach its customers. Together, they operate through 700 branches across 27 states in India.
The company also runs co-lending programs for the microfinance sector. So far, Avanti has supported 900,000 low-income households and built an asset under management (AUM) of ₹1,640 crore. By the end of this fiscal year, Avanti aims to grow its AUM to ₹2,100 crore, targeting a 50% year-on-year growth rate.
However, the microfinance sector’s current stress has impacted Avanti as well. Its gross bad loans rose to 2.7% in November, compared to 1.2% in March.
“We remain hopeful that there will be steady improvements across the industry and that normalcy will return within the next quarter or two,” Gupta said.
