Mumbai-based Non-Banking Financial Company (NBFC), Ashv Finance, part of the Aavishkaar Group, has announced raising $10 million in fresh funding from Encourage Capital.
This round of funding marks a pivotal step for the company in expanding its services across India. Intellecap served as the exclusive advisor for this transaction.
Specializing in cash-flow-based loans, Ashv Finance has emerged as a key player in empowering Micro, Small & Medium Enterprises (MSMEs) by offering collateral-free and flexible financing options.
With an impressive asset under management (AUM) of INR 10 billion and a presence in over 180 locations across 15 Indian states, the company is dedicated to fuelling the growth of small businesses with big ambitions.
This new capital injection is earmarked for expanding Ashv Finance’s footprint nationwide, according to the announcement.
A significant portion of the funds will be channeled into launching a groundbreaking initiative to finance rooftop solar installations for micro and small businesses. This move aligns with India’s broader energy transition goals and represents a major step in climate finance for the company.
Tarun Arora, Partner at Encourage Capital, expressed enthusiasm for the partnership, highlighting Ashv Finance’s commitment to a tech-led, data-driven lending model that effectively addresses the needs of the underserved MSME market. Arora also commended Ashv’s initiative in rooftop solar financing, recognizing it as a vital step in climate finance.
Nikesh Kumar Sinha, Managing Director at Ashv Finance, said:
This investment marks our foray into rooftop Solar finance-something we have been contemplating for a while- to commence verticalization of businesses within Ashv into socially relevant sectors in line with the Aavishkaar group ethos and focus. Ashv aims to disburse 390crs of loans to micro & small enterprises in the roof top solar space in the next 5 years. This Capital will also help us reach out to more and more micro & small businesses and scale our AUM to next levels of 1800-2000 crs.
Gagandeep Bakshi, Partner & Director at Intellecap, shared the excitement of being instrumental in advising Ashv Finance for this fundraise. He underscored the funding’s significance in bolstering Ashv’s capacity to support small businesses with collateral-free loans, leveraging superior technology and credit analytics to fill a critical gap in the market.
