Bengaluru-based Avanti Finance, a technology-led Non-Banking Financial Company (NBFC) focused on financial inclusion, has raised $14.2 million (approximately Rs 120 crore) in equity funding. The round saw participation from Dia Vikas Capital, existing investors IDH Farmfit Fund, NRJN Family Trust, Rabo Partnerships, and select High Net-Worth Individuals (HNIs).
This funding adds to Avanti’s impressive investment journey, with early backing from prominent entities such as The Bill & Melinda Gates Foundation, OikoCredit, and Nomura. Before this round, the company raised $24 million in a Series B funding round in April 2023, bringing the total funding to approximately $80 million since its inception in 2018.
Empowering Micro-Enterprises and Urban Gig Workers
Avanti Finance specializes in providing small-ticket loans for income generation and working capital, primarily targeting micro-enterprises. Recently, the company expanded its services to include the urban gig worker segment, addressing the financial needs of this growing demographic.
With a diversified, asset-light distribution network, Avanti collaborates with curated partners, including smaller financial institutions, agtech players, and fintech partners. Its network spans over 700 branches across 27 states and 430+ districts, enabling the company to serve customers efficiently and at scale.
Key Achievements and Impact
Avanti Finance has made significant strides in financial inclusion, serving 900,000 low-income households and achieving an Assets Under Management (AUM) of Rs 1,640 crore. Notably, 90% of its borrowers are women, reflecting the company’s focus on empowering women through its assisted technology model. Loan products are meticulously designed to align with livelihood-specific cash flows, leveraging Avanti’s deep tech and agile platform.
Investor Perspective
Arpita Pal Agrawal, Managing Director and CEO of Dia Vikas Capital, expressed excitement about the partnership, stating, “We are thrilled to join hands with Avanti in their mission to create impact at scale across India. By combining technology and a curated network of diverse partners, Avanti offers hyperlocal, crowdsourced, and fit-for-purpose loan products that enhance the financial well-being of low-income households.”
Dia Vikas Capital, a subsidiary of Opportunity International Australia, supports inclusive financial service providers with innovative, sustainable, and scalable solutions to combat poverty. The organization focuses on leveraging digital technologies to address complex socio-economic challenges.
Scaling Financial Inclusion in India
Avanti Finance’s scalable and capital-efficient model has been instrumental in driving financial inclusion. By partnering with reputed financial institutions, the company ensures seamless service delivery while fostering economic empowerment among underserved communities.
As India’s financial landscape evolves, Avanti’s innovative approach and strategic partnerships position it as a pivotal player in transforming lives through accessible and inclusive financial solutions.
