Financial Inclusion Platform Avanti Finance Raises Series B1B2 Funding of USD 14.2 million (INR 120 crores) from Dia Vikas Capital, existing investors & HNIs

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Bengaluru-based Avanti Finance (“Avanti”), a technology-led NBFC focused on financial inclusion, has secured USD 14.2 million (INR 120 crores) equity funding from Dia Vikas Capital, existing investors IDH Farmfit Fund, NRJN Family Trust, Rabo Partnerships and select HNIs. The company’s early investors include The Bill & Melinda Gates Foundation, Oiko Credit & Nomura.

Dia Vikas Capital is a subsidiary of Opportunity International Australia, which partners with Inclusive financial service providers with innovative, sustainable, resilient, scalable solutions that address the complex nature of poverty and leverage digital technologies to scale and sustain them.

Avanti Finance previously raised $24 million in a Series B funding round in April last year. With the current funding, the total amount raised till date stands at around USD 80 million.

Rahul Gupta, CEO of Avanti Finance, said, “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 stated “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 financial well being of low income households”

Avanti Finance launched in 2018 and offers small-ticket loans primarily for income generation, working capital to micro enterprises and has made an encouraging foray in the urban gig worker segment. The company has developed a diversified , asset light and unique distribution network of curated partners consisting of smaller financial institutions, agtech players and fintech partners that collectively originate and serve its customers at over 700 branches spread across 27 states , 430+ districts. It is a leader in co-lending for the microfinance segment and has partnered with reputed financial institutions for the same that makes it both scalable and capital efficient.

Avanti has demonstrated strong growth having served 900,000 low income households with an AUM of INR 1640 crores. 90% of its borrowers are women served via an assisted technology model , with loan products carefully designed to mirror livelihood specific cashflows enabled by Avanti’s deep tech and highly agile platform.

Unitus Capital acted as exclusive financial transaction advisor to Avanti and Abhiraj Krishna Associates acted as the legal advisors to Avanti.