VC Fund Investments
SME lender Arth raises $2.5 M from Germany's DEG, MIT Alumni Network, others
Arth, a Mumbai-based lender to micro, medium and small enterprises (MSMEs), has raised USD 2.5 million in a funding round led by Germany-based development finance institution DEG, MIT Alumni Network as well as from other angel investors in the US and Canada. The startup had earlier raised USD 1 million from its founders, friends, and family. Arth provides working capital, embedded insurance, and income-generating payment services through its financial services platform, designed for micro MSMEs. The platform claims to have facilitated 3.5 lakh loans and insurance covers till date. The new funds will be used to strengthen tech infrastructure, expand offerings and build risk management systems. The company plans to scale to one million nano and micro business owners through its ‘phydigital' model offering both credit and payments services.
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