Private Equity

Social VC Investments

Lender to small entrepreneurs Arthan Finance raises $2.5 M from MSDF, others

Economic Times  

The Michael & Susan Dell Foundation has led a USD 2.5 million equity investment in Mumbai-based fintech startup Arthan Finance, which offers loans to tiny entrepreneurs. Unitus Capital advised Arthan Finance on this deal while Positron Advisors worked for the Dell Foundation. This is the first institutional investment in the firm, which in June 2019 received a licence from the central bank to operate as a non-banking finance company (NBFC). The Dell Foundation has put in USD 1.5 million, while the balance came from existing angel investors including economist Ajit Ranade and finance professional Sunil Gulati. Founded by former RBL Bank colleagues Pravash Dash, Kunal Mehta and Gowrisankara rao Alamanda, Arthan Finance offers growth capital to self-employed micro and small enterprises in Tier II and Tier III centres of India. It has provided loans to about 3,500 borrowers till date.