Avanti Finance, a Bengaluru-based non-bank finance company (NBFC), has received $24 million in funding in its Series B round to fuel its innovative strategy of providing financial solutions to smallholder farmers in rural India. What sets Avanti apart is its use of a digital delivery model to offer affordable and hyperlocal credit products tailored to meet the specific livelihood and income flows of each household. The company has disbursed over Rs 1300 crore of loans to about 275,000 households without any proprietary branches.
Avanti aims to expand its reach to 1.5 million households with 2,500 crore in assets under management over the next two years through its partnerships with social enterprises, financial institutions, agritech firms, and farmer producer organizations (FPOs) across 300 districts in 24 states in India. The company's "smallholder ecosystem" strategy is data-driven and focuses on empowering smallholder farmers through local cooperatives and service providers.
The Series B funding round was led by Rabo Partnerships and IDH Farmfit Fund, with participation from existing investors Oikocredit and NRJN Trust. This funding comes 18 months after the company raised $15 million in its Series A extended round in October 2021. With this funding, Avanti is set to revolutionize the agricultural finance sector in India by empowering smallholder farmers and ensuring the sustainability of rural livelihoods.
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