Avanti Finance Garners USD 14.2 Mn to Enhance Rural and Urban Credit Channels The funding will expand Avanti's loan book, enhance its deep-tech platform, innovate frictionless credit solutions, and strengthen channels in rural and urban markets for inclusive financial services.
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Bengaluru-based NBFC Avanti Finance has raised USD 14.2 million (INR 120 crore) in its latest Series B funding round. The round saw participation from Dia Vikas Capital and existing investors, including IDH Farmfit Fund, NRJN Family Trust, Rabo Partnerships, and select high-net-worth individuals (HNIs). Avanti's early backers include The Bill & Melinda Gates Foundation, OikoCredit, and Nomura.
This marks Avanti Finance's second Series B round after raising USD 24 million in April 2023, bringing its total funding to approximately USD 80 million to date.
Avanti will deploy the latest funding to expand its loan book, enhance its deep-tech platform, and innovate frictionless credit solutions tailored to its customers' needs. The capital will also support the augmentation of Avanti's channels across rural and urban markets.
Rahul Gupta, CEO of Avanti Finance, said, "The repeat investment from our existing shareholders is a strong validation of our transformational, asset-light, and capital-efficient model. This growth capital will help us continue delivering innovative credit solutions and strengthen our reach across diverse geographies."
Founded in 2018, Avanti Finance specialises in providing small-ticket loans for income generation and working capital needs, primarily catering to micro-enterprises and the urban gig workforce. Leveraging an asset-light, scalable model, Avanti has developed a unique distribution network through partnerships with smaller financial institutions, tech players, and fintech platforms.
The company's reach spans over 700 branches across 27 states and 430 districts, positioning it as a leader in co-lending for the microfinance sector. Avanti claims to have partnered with several reputed financial institutions, bolstering its ability to scale efficiently.
To date, Avanti claims to have served 900,000 low-income households, with a current asset under management (AUM) of INR 1,640 crore. Notably, 90% of its borrowers are women, supported through an assisted technology model that aligns loan products with livelihood-specific cash flows.
Arpita Pal Agrawal, MD and CEO of Dia Vikas Capital, highlighted, "We are excited to support Avanti's vision of leveraging technology and a curated network of partners to offer hyperlocal, crowdsourced, and purpose-fit loan products. Their approach enhances the financial well-being of low-income households at scale."
Unitus Capital acted as the exclusive financial advisor for the transaction, while Abhiraj Krishna Associates served as legal advisors.
