[Funding alert] Avail Finance raises Rs 24Cr in debt financing led by Alteria Capital
Bengaluru-based neobanking startup Avail Finance — which brings the blue-collared workforce under the financial umbrella — on Monday said it has raised Rs 24 crore in debt financing led by Alteria Capital.
To date, the startup has raised $21.6 million in equity from Matrix Partners, Falcon Edge, and Ola.
Speaking on the investment, Ankush Aggarwal, Founder and CEO, Avail Finance, said,
“We continue to stay focused on delivering a seamless experience for our customers, and this financial year, the priority will be to diversify our product portfolio, service offerings, and offer financial services to the ever-growing young population. The funding from Alteria is a testimony to the trust that the major ecosystem players are placing in us while we progress in our journey of financially including every Indian."
During the COVID-19 lockdown, Avail offered interest-free loans to over 100,000 gig workers who lost their source of income, helping them tide over the financial stress. As of date, it has processed loans for over 300,000 customers.
“We are very happy to partner with Avail in their journey of taking financial services to the underserved and credit-starved blue-collared workforce in India. Their proprietary model is custom-made to suit the financial needs of consumers in their segment,” said Punit Shah, Partner, Alteria Capital.
Founded in 2017 by Ankush Aggarwal and Tushar Mehndiratta, fintech startup Avail Finance is focused on the gig economy segment. This Binny Bansal-backed startup has grown from a lending platform to the blue-collar workforce to now a neo-bank with products in various categories, including savings, insurance, investment products, etc.
It plays an important role in improving the financial health of a segment, which is playing a critical role in serving the Indian population. It caters to a segment that has low credit card penetration, no credit history, and minimal cash reserves.