Tata-promoted NBFC to raise USD 30 mn

Avanti Finance, the microloan-focused NBFC promoted by Ratan Tata and Nandan Nilekani from their personal philanthropic funds, is looking to raise $30-40 million (up to about Rs 285 crore) in fresh equity from impact investors and domestic financial institutions to fuel growth.
Tata-promoted NBFC to raise USD 30 mn

New Delhi

The Tata Group patriarch and IT maverick invested Rs 50 crore each, two years ago into the Bengaluru-headquartered company to part help a “population-scale problem with a population-size solution”, said Avanti Finance Chief Executive Rahul Gupta, who spent over two decades with GE Capital before taking up this job.

Avanti Finance is a financial inclusion platform built on an open-access digital model to create and deploy financial products in a touchless, presence-less and cashless interface to reach out to the unserved, under-served and the excluded at a hyperlocal level.

“We are looking at raising $30-40 million in growth capital by March-April 2020. New equity capital will be raised through diluting the promoters’ stake. Being an impact-focused entity, we are looking at onboarding impact investors and domestic financial investors,” Gupta said.

In 18 months, Avanti Finance has reached out to over 20,000 needy people and hopes to take this to over 2 lakh by 2022, Gupta said, adding so far it has lent Rs 80 cr loans through its balance sheet.

However, the company plans to do more off-balance sheet lending going forward through loan co-origination with banks.

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