Electronica Finance Limited (EFL), a pioneering provider of loans to Micro, Small, and Medium Enterprises (MSMEs), has announced a significant milestone by closing a $48 million Series B funding round. Led by LeapFrog Investments, a prominent impact investor, and with participation from Aavishkaar Capital, this equity infusion underscores EFL’s commitment to bolstering financial inclusion and sustainable growth in India’s manufacturing landscape.
Encourage Capital, a responsible asset manager based in the United States and an existing investor in EFL did not participate in this latest financing round. The funds are earmarked to further expand EFL’s MSME financing initiatives, particularly focusing on India’s manufacturing sector, which holds immense growth potential.
Under the leadership of Shilpa Pophale, Managing Director & CEO of Electronica Finance Limited, the company aims to leverage its extensive experience and track record in the MSME segment to deliver technology-driven solutions and financial support. By catering to the financing needs of small businesses, EFL aims to fuel India’s economic growth while promoting resilience and sustainability.
EFL’s product offerings, including machine loans, working capital loans, rooftop solar loans, and microloans secured by property, cater to MSMEs’ diverse needs across semi-urban and rural India. Notably, the company’s financing initiatives have facilitated the adoption of energy-efficient technologies, contributing to significant reductions in CO2 emissions.
Stewart Langdon, Partner at LeapFrog Investments, highlighted EFL’s role in transforming India’s MSME sector through sustainable financing solutions. He emphasized the broader socio-economic impact of EFL’s loans, which extend beyond individual businesses to encompass job creation and community development.
Founded in 1990, Electronica Finance Limited has emerged as a key player in India’s MSME financing landscape. With a focus on innovation and inclusivity, EFL continues to scale its offerings, addressing the evolving needs of small businesses under the leadership of Shilpa Pophale.
Anurag Agrawal, Partner at Aavishkaar Capital, expressed excitement about partnering with EFL to support its next growth phase. He emphasized the alignment of EFL’s diverse portfolio, spanning MSME, climate, and rural financing, with Aavishkaar Capital’s commitment to inclusive development and gender equality.
With its headquarters in Pune, Electronica Finance Limited, a member of the SRP Electronica Group, remains dedicated to advancing MSME finance in India, leveraging its decades-long expertise and innovative solutions to empower small businesses and foster sustainable economic development.
