Financial inclusion platform Avanti Finance raises $14.2 M in Series B1B2 round
Set up in 2018 by Ratan Tata, Nandan Nikelani, and economist Vijay Kelkar, Avanti Finance focuses on providing financial products to underserved and marginalised communities. With the current funding, the company has raised a total amount of around $80 million till date.
Avanti Finance, a technology-led NBFC focused on financial inclusion, has raised $14.2 million (Rs 120 crore) equity funding from Dia Vikas Capital, existing investors IDH Farmfit Fund, NRJN Family Trust, and Rabo Partnerships, and select HNIs.
The Bengaluru-based company's early investors include The Bill & Melinda Gates Foundation, Oiko Credit & Nomura.
Avanti Finance plans to use the capital to increase its loan book, strengthen its deeptech platform for ongoing innovation of frictionless credit to customers, and augment its channels in both rural and urban segments.
Set up in 2018 by Ratan Tata, Nandan Nikelani, and prominent economist Vijay Kelkar, Avanti Finance focuses on providing financial products to underserved and marginalised communities.
The company has developed a diversified and asset-light distribution network of curated partners, comprising smaller financial institutions, agritech players, and fintech partners, who collectively originate and serve customers at over 700 branches spread across 27 states in 430+ districts. It provides co-lending for the microfinance segment and has partnered with reputed financial institutions for the same.
The company had previously raised $24 million in a Series B funding round in April last year. With the current funding, the company has raised a total amount of around $80 million till date.
Avanti has served 9 lakh low-income households with an AUM of Rs 1,640 crore, said the company in a statement. Ninety per cent of its borrowers are women served via an assisted technology model, with loan products designed to mirror livelihood specific cashflows, enabled by Avanti’s deeptech platform, it added.
"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.
"The repeat investment from our existing shareholders is also a strong validation of our transformational asset light and capital efficient model,” he added.
“We are really excited to partner with Avanti with their vision and work to create impact at scale across India by combining the power of technology and a curated network of diverse partners to offer hyperlocal, crowdsourced, fit-for-purpose loan products to enhance the financial well-being of low income households,” said Arpita Pal Agrawal, MD & CEO of Dia Vikas Capital.
Dia Vikas Capital is a subsidiary of Opportunity International Australia, which partners with inclusive financial service providers.
Feature image: The Avanti Finance team
Edited by Swetha Kannan