Bengaluru-based non-banking financial company (NBFC) Avanti Finance has successfully raised $14.2 million (Rs 120 crore) in its Series B funding round. The round was led by Dia Vikas Capital and supported by existing investors IDH Farmfit Fund, NRJN Family Trust, Rabo Partnerships, and select high-net-worth individuals (HNIs). The company’s early investors include prominent organizations such as The Bill & Melinda Gates Foundation, Oiko Credit, and Nomura.
This funding follows Avanti’s previous $24 million Series B round in April 2023, bringing the total amount raised to date to approximately $80 million.
The latest capital injection will be used to expand Avanti’s loan portfolio, enhance its deep-tech platform for providing seamless credit, and improve its presence across both rural and urban markets.
Founded by Rahul Gupta, Avanti Finance primarily offers small-ticket loans aimed at income generation and working capital support for micro-enterprises. The company has made notable strides in serving the growing urban gig worker segment. Its business model is built around a diversified, asset-light distribution network that leverages partnerships with smaller financial institutions, tech players, and fintech partners. This network spans more than 700 branches across 27 states and over 430 districts.
Avanti Finance has emerged as a leader in co-lending within the microfinance sector, forming strategic alliances with well-established financial institutions to make its operations scalable and capital-efficient. The company serves nearly 900,000 low-income households and boasts an assets under management (AUM) of Rs 1,640 crore. Notably, 90% of its borrowers are women, and the company employs an assisted technology model to serve its customers.
With its innovative approach to providing accessible credit and fostering financial inclusion, Avanti Finance is poised for further growth in India’s evolving financial landscape.
