Avanti Finance Secures $14.2 Million in Series B1-B2 Funding
- ByStartupStory | December 11, 2024
Bengaluru-based Avanti Finance, a technology-driven non-banking financial company (NBFC) focused on financial inclusion, has raised $14.2 million (INR 120 crores) in equity funding. The Series B1-B2 round was led by Dia Vikas Capital, with participation from existing investors, including IDH Farmfit Fund, NRJN Family Trust, Rabo Partnerships, and select high-net-worth individuals (HNIs).
Early backers of Avanti include prominent names such as The Bill & Melinda Gates Foundation, Oiko Credit, and Nomura. With this latest funding round, Avanti’s total capital raised to date reaches approximately $80 million.
Avanti Finance is on a mission to empower 100 million underserved households across India through its technology-driven financial services platform. The company’s innovative approach combines a deep-tech platform with a unique distribution network of smaller financial institutions, agtech players, and fintech partners. Together, they serve customers at over 700 branches spanning 27 states and 430+ districts.
Commenting on the latest funding round, 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 repeat investment from our existing shareholders is also a strong validation of our transformational asset-light and capital-efficient model. This growth capital will be used to increase our loan book, further strengthen the capabilities of our deep-tech platform for ongoing innovation of frictionless credit for our customers, and augment our channels in both rural & urban segments.”
Arpita Pal Agrawal, MD & CEO of Dia Vikas Capital, 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.”
Avanti Finance, launched in 2018, has established itself as a leader in the microfinance co-lending space. It primarily offers small-ticket loans for income generation and working capital to microenterprises. The company has also ventured into the urban gig worker segment, demonstrating adaptability in meeting diverse financial needs.
With an asset under management (AUM) of INR 1,640 crores, Avanti has served 900,000 low-income households to date. Notably, 90% of its borrowers are women, reflecting its commitment to fostering financial inclusion among underserved demographics. The platform leverages an assisted technology model and designs loan products tailored to livelihood-specific cash flows.
Dia Vikas Capital, a subsidiary of Opportunity International Australia, supports inclusive financial service providers with innovative, sustainable, and scalable solutions that leverage digital technologies to address the complexities of poverty.
Unitus Capital acted as the exclusive financial transaction advisor to Avanti Finance, while Abhiraj Krishna Associates provided legal advisory services for the funding round.
About Avanti Finance
Avanti Finance envisions enabling sustainable livelihoods by empowering underserved communities through accessible financial services. The company’s digital-first approach fosters hyperlocal innovation and mass customization, aiming to build scalable and community-centric systems for the unbanked segment.
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