Digital lender Avanti Finance raises $14.2 million from Dia Vikas Capital, others

11 Dec 2024, 04:15 PM

Existing investors IDH Farmfit Fund, NRJN Family Trust, Rabo Partnerships and select HNIs.

Team Head&Tale

Bengaluru-based digital lender Avanti Finance has secured $14.2 million (Rs 120 crores) equity funding from Dia Vikas Capital, existing investors IDH Farmfit Fund, NRJN Family Trust, Rabo Partnerships and select HNIs. 

Dia Vikas Capital is a subsidiary of Opportunity International Australia. The company’s early investors include The Bill & Melinda Gates Foundation, Oiko Credit & Nomura. 

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 $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."

"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," Gupta added.

Arpita Pal Agrawal, MD and 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.” 

Launched in 2018, Avanti 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  an asset light distribution network of partners consisting of smaller financial institutions and fintech partners that collectively originate and serve its customers at over 700 branches spread across 27 states , 430+ districts. It also offers co-lending for the microfinance segment.

Avanti has an AUM of Rs 1640 crores with 90% of its borrowers as women served via an assisted technology model.

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

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