Fintech app ARTH has raised $2.5 Mn through equity financing in its Pre-Series A funding round.
The funding round saw participation from the Germany-based DEG and MIT Alumni Network.
The funds will be used to strengthen ARTH’s tech infrastructure, expand its offerings and build risk management systems.
ARTH has raised $3.5 Mn of investment to date, as shared by the startup.
Founded in 2018 by Shweta Aprameya, ARTH offers collateral-free loans to micro small and medium-sized enterprises in rural areas as well as urban cities of India. Besides, the startup offers insurance covers to micro-entrepreneurs and their families.
Some of the working capital loans that ARTH offers include:
- ARTH Vridhi – It offers customised loans to micro-entrepreneurs along with flexible repayment options
- ARTH Sanchay- It provides financial assistance to aspiring entrepreneurs, daily wage earners and petty service providers
- ARTH Swabhimaan – It provides financial assistance up to INR 10,000 under the PM SVANidhi scheme to street vendors, who are affected by the pandemic
- ARTH Safal- It offers loans to small businesses to support their inventory requirements
- ARTH Avatar – It offers financial aid of up to INR 50,000 to essential service providers in urban cities of India
ARTH claims to have offered 3.5 Lakh loans and insurance covers to micro-entrepreneurs to date. It aims to offer financial aid to more than 1 Mn micro and small businesses.
The startup faces competition from the likes of FlexiLoans, LendingKart, LenDenClub, and Kinara Capital.
According to a report, India’s fintech market is poised to reach $1.3 Tn, growing at a CAGR of 31% by 2025.
The sector is lately buzzing with fundraising activities. Yesterday (June 6), fintech startup FlexiLoans secured a whopping $90 Mn from MAJ Invest, Fasanara Capital, the family offices of Harry Banga and Yogesh Mahansaria, as well as existing investor– Sanjay Nayar.
Earlier this month, a fintech unicorn slice bagged $50 Mn from Tiger Global, Moore Strategic Ventures, Insight Partners and GMO VenturePartners.
In May, Bengaluru-based fintech startup Innoviti was reported to be raising $10 Mn from its existing investor Netherland-based FMO.
