Arohan Financial

What Arohan Financial does

Arohan Financial Services Limited is a Kolkata-headquartered technology-enabled NBFC-MFI incorporated in 1991, with microfinance operations launched in 2006 under the Aavishkaar Group. The company provides collateral-free income-generating loans (INR 25,000-2,00,000) to financially underserved households (annual income ≤INR 300,000) — 99% of customers are women — through a Joint Liability Group (JLG) model where groups of 3-5 borrowers hold collective repayment responsibility. Core products include Saral (general microfinance), Micro Enterprise Loans (working capital for marketplace traders), and ArohanPrivilege Digital Lending (smaller-ticket INR 5,000-75,000 digital loans for existing customers). Revenue is generated through interest income on the loan portfolio, insurance distribution commissions (IRDAI Corporate Agent for term life, Hospicash, personal accident, and other products), MFI Alliance term loans (up to INR 30 Cr to smaller MFIs), and cross-sell facilitation fees on lifestyle products.

The company operates 1,102 branches across 18 Indian states with 10,252 employees (92.48% in field roles) serving ~2 million active customers. Its technology stack is built around a proprietary Core Banking System, an in-house credit scoring model called Nirnay that drives a risk-based pricing framework (Board-capped at 12% margin on cost of funds), an Aadhaar-enabled eKYC and e-Signature paperless loan origination process, the ArohanPrivilege digital lending platform, the Sanjaya AI-enabled field monitoring platform, and an ISO/IEC 27001:2013 certified information security infrastructure. Distribution is primarily direct-via-field, supported by IRDAI insurance partnerships and smaller-MFI wholesale lending.

Financially, Arohan reported Total Income of INR 1,695 Cr in FY 2024-25, AUM of INR 6,308 Cr as of December 2025, Net Worth of INR 2,025 Cr, and Capital Adequacy of 34.09%. Asset quality is strong with Gross NPA of 1.69% and Net NPA of 0.39% (December 2025), collection efficiency of 99.7% (January 2026), and customer retention of 73.12%. The company filed a DRHP with SEBI in May 2026 for an INR 600 crore IPO. Its regulatory history includes an RBI Cease & Desist order in October 2024 over usurious pricing concerns, resolved in 2.5 months by January 2025 — the second-fastest such exit in the sector.

Name

Arohan Financial

Legal name

Arohan Financial Services Limited

Website

https://arohan.in

Company type

Private

Founded year

1991

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Arohan Financial is a Kolkata-headquartered technology-enabled NBFC-MFI providing collateral-free income-generating loans (INR 25,000-2,00,000) to financially underserved women via Joint Liability Groups, serving ~2 million customers across 1,102 branches in 18 Indian states under the Aavishkaar Group.

Ownership category

akta.pro rank

Product category

Microfinance Lending (NBFC-MFI)

NAICS

Credit Intermediation and Related Activities (522)

SIC

Short-Term Business Credit Institutions (6153), Personal Credit Institutions (6141)

akta.pro primary industry

Microloans & Working Capital Loans (FSAKAGAA)

akta.pro secondary industries

Pricing, Risk-Based Offer & Limit Management (FSAGAHAE), Direct-to-Consumer (D2C) Personal Lending Platforms (Unsecured Installment) (FSAKAAAK)

Keywords

• Microfinance lending
• Joint liability group loans
• Financial inclusion services
• Collateral-free credit
• NBFC microfinance

Headquarters

HQ city

Kolkata

HQ country

India

HQ region

Asia

Offices3 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales, Supply Chain

Revenue model

1. Microfinance Lending (Joint Liability Groups): Core revenue stream from providing income-generating collateral-free loans to women in JLG groups (3-5 members). Loans range from INR 25,000–1,00,000 for Saral products, INR 75,000–2,00,000 for Micro Enterprise Loans, and INR 5,000–75,000 for ArohanPrivilege digital lending. Revenue is earned as interest income on the loan portfolio.
2. Insurance Distribution: Arohan is a registered Corporate Agent (Composite) with IRDAI, offering term life insurance, Hospicash, Shopkeeper Insurance, Suraksha Kavach, and Personal Accident Insurance through partnerships with leading Indian insurers. Revenue is earned as commission/agent fees.
3. Term Loans to Smaller MFIs: Arohan provides term loans up to INR 30 Cr to smaller microfinance institutions as part of its MFI Alliances vertical, earning interest income.
4. ArohanPrivilege Digital Lending: Digital lending platform offering INR 5,000–75,000 loans to existing gold-standard microfinance customers, with interest income as primary revenue
5. Cross-Sell Products (Lifestyle): Partnership with various brands to facilitate access to lifestyle products (mobile phones, refrigerators, televisions, etc.) for customers. Revenue through facilitation fees or margin on product sales.

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels7 records

Core offering

Arohan Financial Services Limited is a technology-enabled NBFC-MFI that provides collateral-free income-generating microfinance loans to financially underserved households in India, primarily women borrowers organised in Joint Liability Groups of 3-5 members. Its portfolio spans Saral loans (INR 25,000-1,00,000), Micro Enterprise Loans (INR 75,000-2,00,000), ArohanPrivilege digital loans (INR 5,000-75,000), insurance products distributed as a registered IRDAI Corporate Agent, and term loans to smaller MFIs. Operations are run through a 1,102-branch network across 18 Indian states, supported by an in-house Core Banking System, the proprietary Nirnay credit scoring model, and a fully paperless digital lending platform.

Product overview

Arohan Financial Services operates as a technology-enabled NBFC-MFI offering a multi-tiered product portfolio centered on microfinance loans and digital lending solutions. The core offerings include Saral (income-generating microfinance loans) and Micro Enterprise Loans, complemented by the ArohanPrivilege Digital Lending platform for digital-first customer experiences. Secondary products include insurance offerings through IRDAI-registered partnerships and term loans to smaller MFIs. The company also offers loyalty programmes (Sahbhaagi) and piloted balance transfer products (Sarathi), providing a comprehensive suite spanning from group-based microfinance through secured MSME lending to digital-first individual credit.

Differentiator

Problem solved

Functional benefit

Brands

• ArohanPrivilege: Digital lending platform offering seamless digital loan experience for valued customers with loans from INR 5,000 to 75,000.
• Saral
• Micro Enterprise Loan
• ArohanPrivilege Digital

Products and services

• Saral

Quantifiable outcome

• Gross NPA reduced from 2.9% to 1.69%; Net NPA at 0.39% as of December 2025
• +6 more outcomes

Named customers1 record

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

AI capability4 records

Feature10 records

Partnerships

Three partnerships are on record, tiered core and minor.

• IRDAI-Registered Insurance CompaniescoreStrategic or Co-development Partner · 1 January 2026Arohan is a registered Corporate Agent (Composite) with IRDAI and offers insurance products (term life, Hospicash, Shopkeeper Insurance, Suraksha Kavach, Personal Accident) through partnerships with leading Indian insurers. Revenue is earned as commission/agent fees.
• MFIN (Micro Finance Industry Network)coreStrategic or Co-development Partner · 1 January 2026Arohan is an active member of MFIN, the RBI-recognised Self-Regulatory Organisation (SRO) for the microfinance sector. MD Manoj Nambiar served as Chairman of MFIN's Governing Board for 2024-25 and helped launch MFIN Guard Rails 1.0 (July 2024), tightening lending norms for member institutions.
• MUFG Intime India Private LimitedminorOthers · 1 January 2026Registrar and Transfer Agent (RTA) for Arohan Financial Services, located at C-101, 1st Floor, 247 Park, L.B.S Marg, Vikhroli (West), Mumbai – 400083.

Scale indicators31 records

Recent moves9 records

Expansion highlights6 records

Direct peers

• CreditAccess Grameen: Largest NBFC-MFI in India by loan book, focused on JLG lending to women in rural areas. Directly comparable to Arohan in business model (JLG), customer segment (low-income women), and regulatory category (NBFC-MFI).
• Spandana Sphoorty Financial: Mid-sized NBFC-MFI serving women borrowers through the JLG model with a similar rural and semi-urban focus. Competes head-to-head with Arohan in multiple states and operates a comparable technology-led lending approach.
• Muthoot Microfin: NBFC-MFI backed by the Muthoot Group, providing JLG microfinance loans predominantly to women. Directly comparable in product structure, customer segment, and geographic overlap with Arohan's eastern and central Indian footprint.
• Fusion Microfinance: Growing NBFC-MFI focused on women borrowers in rural and semi-urban India through JLG groups. Competes directly with Arohan in tier-2/tier-3 geographies and has overlapping target customer profile.
• Asirvad Microfinance: NBFC-MFI offering JLG loans to low-income women. Notably, Asirvad was also subject to the same 2022 RBI lending restriction as Arohan — making it a particularly close comparable on regulatory and pricing risk dimensions.
• Svatantra Microfin: NBFC-MFI focused on women empowerment through JLG lending in rural India. Comparable in target segment, JLG methodology, and operating geographies, with a similar focus on financial inclusion impact.

Broad incumbents

• Bandhan Bank: Large commercial bank with a substantial microfinance vertical originating from Bandhan's MFI roots. Competes with Arohan for the same JLG borrowers but offers a much broader product suite including deposits and SME banking.
• Ujjivan Small Finance Bank: Small finance bank originating from an MFI background, serving low-income borrowers and micro-enterprises. Overlaps with Arohan's customer base but also offers savings accounts and asset products beyond microfinance loans.

Emerging players

• DMI Finance: Emerging digital NBFC expanding into microfinance and small-ticket lending. Subject to the same 2022 RBI lending restriction as Arohan, making it a relevant peer on regulatory exposure and digital lending strategy.
• Navi Finserv: Fintech-led NBFC with growing microfinance and personal loan exposure. Also subject to the 2022 RBI lending restriction; provides a comparable on the digital-first expansion path Arohan is pursuing with ArohanPrivilege.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat6 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/arohan_fin
• LinkedInlinkedin.com/company/arohan-financial-services
• Facebookfacebook.com/177244652481692

Compliance6 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Funding overview

Funding rounds9 records

Investors9 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Arohan Financial