Avanti Finance Secures $14.2 Mn to Expand Financial Inclusion in India

Bengaluru-based financial inclusion platform Avanti Finance has raised an impressive $14.2 million (INR 120 crores) in Series B1/B2 equity funding, signaling a robust endorsement of its mission to empower low-income households across India. The funding round was led by Dia Vikas Capital, a subsidiary of Opportunity International Australia, with participation from existing investors IDH Farmfit Fund, NRJN Family Trust, Rabo Partnerships, and select high-net-worth individuals (HNIs).

This latest investment adds to the $24 million raised in its Series B round last year, bringing the total equity funding raised by Avanti to $80 million. With its asset-light and capital-efficient model, the tech-driven non-banking financial company (NBFC) is set to expand its operations and deepen its impact in both rural and urban areas.

Read More: 5,000 Startups Shut Down in 2024: Why Do Startups Fail in India?

Avani Finance Funding

Founded in 2018, Avanti Finance focuses on providing small-ticket loans tailored for income generation and working capital to micro-enterprises. Over the years, the company has carved a niche in the financial inclusion space by serving over 900,000 low-income households with a total AUM (Assets Under Management) of INR 1640 crores. Notably, 90% of its borrowers are women, reflecting its commitment to fostering gender equity in economic empowerment.

Speaking about the funding, Rahul Gupta, CEO of Avanti Finance, stated:

“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. The repeated investment from our existing shareholders is also a strong validation of our transformational asset-light and capital-efficient model.”

Gupta also emphasized that the fresh capital will be utilized to bolster Avanti’s loan book, enhance its deep-tech platform for continuous innovation, and expand its distribution network to serve a broader customer base in both rural and urban segments.

Read More: No Country Can Beat Inflation Alone: FM Calls for Collective Action

The Role of Technology and Partnerships

At the core of Avanti’s operations is its deep-tech platform, designed to facilitate frictionless credit solutions. This technology enables the creation of hyperlocal, livelihood-specific loan products that mirror cashflows of diverse borrower profiles. Avanti’s innovative model leverages a curated network of partners, including smaller financial institutions, agtech players, and fintech companies, to originate and serve loans across 700+ branches in 27 states and 430+ districts.

Arpita Pal Agrawal, MD & CEO of Dia Vikas Capital, highlighted the transformative potential of Avanti’s approach:

“We are really excited to partner with Avanti in their vision to create impact at scale across India. By combining the power of technology with a curated network of diverse partners, Avanti offers fit-for-purpose loan products that enhance the financial well-being of low-income households.”

Avanti Finance has emerged as a leader in co-lending for the microfinance sector, collaborating with reputed financial institutions to deliver scalable and sustainable credit solutions. Its unique distribution model not only reduces operational costs but also ensures that underserved communities receive customized financial products that align with their specific needs.

Read More: Can India Lead the Way in Social Media Accountability and Ethical AI?

The company’s growing focus on urban gig workers is another testament to its adaptability and vision to address evolving economic realities. By bridging the gap between formal financial services and unbanked segments, Avanti continues to redefine financial inclusion in India.

A Journey Fueled by Strategic Investments

Avanti’s list of early backers includes prestigious names such as The Bill & Melinda Gates Foundation, Oikocredit, and Nomura, which underscores the credibility of its mission and execution. With this latest round, the company is poised to scale its operations further, focusing on sustainable impact through its inclusive and innovative approach.

Unitus Capital served as the exclusive financial transaction advisor for this funding round, while Abhiraj Krishna Associates provided legal advisory services.

Read More: Stability, Trust, and Growth: Sanjay Malhotra's Vision for the RBI

Looking Ahead: Scaling Impact and Innovation

Avanti’s journey thus far is a testament to its commitment to driving financial inclusion at scale. With the infusion of fresh capital, the company aims to amplify its impact, enhance its product offerings, and strengthen its technological backbone. As it charts its course forward, Avanti Finance stands as a beacon of hope for millions of underserved households, paving the way for a more equitable and prosperous India.

Join Our Thriving Entrepreneurial Community

Twitter: @TiceNews | LinkedIn: TICE News | Instagram: @tice.news | Google: Leave a Review