Arthan Finance

What Arthan Finance does

Arthan Finance Private Limited is a Mumbai-headquartered, RBI-licensed Non-Banking Finance Company (NBFC) founded in December 2018 that provides collateral-free and secured business loans to self-employed nano and micro entrepreneurs, retailers, and MSMEs in tier II, III, and IV cities of India. The company's product portfolio spans unsecured business loans (up to Rs 3 lakhs), secured business loans (up to Rs 20 lakhs against property, insurance bonds, or movable assets), supply chain finance and invoice discounting (Rs 10,000-20 lakhs), instant mobile-app loans with 3-hour disbursal, and revolving credit lines, with an interest-free loan product in development. As of the latest disclosed figures, Arthan has disbursed over Rs 500 crore to more than 20,000 borrowers across Maharashtra, Odisha, Andhra Pradesh, and Telangana, operating through 50+ branches staffed by relationship managers and supported by a digital self-serve channel.

The core technology is a proprietary AI/ML-based credit scoring and underwriting system that evaluates borrower cash flows and alternative data rather than relying exclusively on traditional bureau scores, enabling loan approvals within 48 hours and lending to thin-file borrowers with NIL or minimal documentation. The platform is delivered through a mobile app offering 5-minute digital onboarding, direct account disbursement up to INR 20 lakhs, and EMI servicing via multiple modes (UPI, NACH, bank transfer, cheques, QR). A group life insurance partnership with Kotak Life Insurance is bundled with loans. The company has raised $8.5 million cumulatively across a 2022 seed round ($2.5M from Michael & Susan Dell Foundation) and a 2024 Series B ($6M led by Incofin India Progress Fund with MSDF participation), with the Series B explicitly earmarked for geographic expansion, AI/ML technology upgrades, and AUM growth targeting Rs 1,000 crore disbursed to 50,000+ borrowers over three years.

Arthan's go-to-market is a hybrid phygital model combining a branch-led field sales force (relationship managers in semi-urban and rural India) with digital self-serve onboarding, supported by a Refer & Earn program, social media presence, and content marketing. Revenue is generated primarily through interest income on the loan book (indicative rates starting at 12.5% per the website EMI calculator), with supply chain finance earning transaction-based take-rate economics. The customer base is highly fragmented across micro-verticals (kirana, poultry, healthcare, agriculture, garments, handicrafts, bakery) with no material customer concentration, and pricing is customized based on borrower profile, business vintage, bureau score, and collateral availability. The leadership team — Founder & Director Kunal Mehta (ex-RBL Bank, Dhanlaxmi Bank, Reliance Capital) and MD & CEO Pravash Dash (ex-Yes Bank, RBL Bank, Axis Bank, IFMR Trust) — is drawn from established financial inclusion operators, lending execution credibility in the microfinance/MSME segment.

Name

Arthan Finance

Legal name

Arthan Finance Private Limited

Website

https://arthan.finance

Company type

Private

Founded year

2018

Operating status

Operating

Headcount range

101–250 employees

Short description

Arthan Finance is an RBI-licensed Indian NBFC that provides collateral-free and secured business loans (Rs 10K to Rs 20 lakhs) to self-employed nano and micro entrepreneurs and MSMEs in tier II, III, and IV cities, using proprietary AI/ML-based credit scoring to serve thin-file borrowers across 50+ branches in four states.

Ownership category

akta.pro rank

Product category

MSME / Microfinance Lending

NAICS

Sales Financing (52222)

SIC

Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Merchant Cash Advance (MCA) & Revenue-Based Financing (FSAKAGAD)

akta.pro secondary industry

Asset-Based Lending (ABL) (FSANADAD)

Keywords

• MSME lending
• Micro business loans
• Supply chain finance
• Invoice discounting
• AI credit scoring

Headquarters

HQ city

Mumbai

HQ country

India

HQ region

Asia

Offices5 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others

Revenue model

1. Unsecured Business Loans: Collateral-free unsecured loans for micro and small businesses with flexible tenure and amounts up to Rs 3 lakhs
2. Secured Business Loans: Loans secured by collateral (property, insurance bonds, movable assets) up to Rs 20 lakhs with flexible repayment options
3. Supply Chain Finance / Invoice Discounting: Short-term working capital finance to dealers/suppliers having trade relationships with SMEs/corporates, amounts from Rs 10K to Rs 20 lakhs
4. Revolving Credit: Flexi loan structure for businesses needing flexible working capital access

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels5 records

Core offering

Arthan Finance is an RBI-registered NBFC that provides collateral-free unsecured business loans up to Rs 3 lakhs and secured business loans up to Rs 20 lakhs to self-employed nano and micro entrepreneurs in India's tier II, III, and IV cities. The company also offers supply chain finance, invoice discounting, instant mobile loans, and revolving credit lines, using proprietary AI/ML-based credit scoring to underwrite borrowers with minimal documentation and disburse within 48 hours.

Product overview

Arthan Finance is a lending technology NBFC offering a diversified portfolio of financial products for MSMEs, self-employed nano and micro entrepreneurs, and underserved businesses in tier II, III, and IV cities across India. The product suite includes unsecured business loans (up to Rs 3 lakhs, collateral-free), secured business loans (up to Rs 20 lakhs with property/asset collateral), supply chain finance, invoice discounting (Rs 10K-20 lakhs), instant mobile loans (disbursed in 3 hours), and revolving credit lines. A core differentiator is their digital-first approach using proprietary AI/ML-powered credit scoring that enables minimal documentation (NIL or minimal KYC), 48-hour loan approvals, and higher loan amounts based on cash flow assessment rather than traditional bureau scores. The company operates across Maharashtra, Odisha, Andhra Pradesh, and Telangana states.

Differentiator

Problem solved

Functional benefit

Products and services

• Unsecured Business Loans Collateral-free unsecured business loans for self-employed entrepreneurs and MSMEs, offering flexible loan amounts up to Rs 3 lakhs with quick processing and minimal documentation requirements. Includes group life insurance coverage.
• Secured Business Loans
• Supply Chain Finance
• Invoice Discounting
• Instant Loans (Mobile App)
• Revolving Credit

Quantifiable outcome

• Loans disbursed to over 20,000 borrowers totaling Rs 500+ crore
• +2 more outcomes

Named customers8 records

Segments4 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability2 records

Feature3 records

Partnerships

Three partnerships are on record, tiered minor.

• Kotak Life InsuranceminorOthersInsurance partner providing group life insurance to loan borrowers, offering nominee protection against death or disability during loan tenure.
• Alankit Assignments LimitedminorOthersRegistrar and Transfer Agent handling share registry and transfer functions. Located at Alankit Heights, New Delhi.
• Catalyst Trusteeship LimitedminorOthersDebenture Trustee managing debt obligations and ensuring compliance with lending covenants.

Scale indicators7 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Lendingkart Finance: Indian NBFC providing working capital and business loans to MSMEs with proprietary data analytics for credit assessment. Highly comparable business model, target segment, and tech-enabled underwriting approach to Arthan's.
• Kinara Capital: NBFC offering collateral-free business loans to small manufacturing and trading enterprises using alternative data and psychometric assessment for credit scoring—closely mirrors Arthan's MSME focus and AI-driven thin-file underwriting.
• UGRO Capital: Listed Indian NBFC focused on lending to MSMEs and small businesses, including those with limited credit history. Targets a similar segment with comparable product set including secured and unsecured business loans.
• IIFL Samman Finance: Subsidiary of IIFL Finance providing micro and small business loans in tier II-IV cities across India. Direct overlap with Arthan's customer segments and geographic focus.
• MAS Financial Services: Indian NBFC providing financing to micro, small, and medium enterprises with strong presence in semi-urban and rural India. Comparable product mix of unsecured and secured business loans for underserved borrowers.
• Svatantra Microfin: Indian microfinance institution providing small ticket loans to women entrepreneurs and micro-enterprises in underserved regions. Comparable customer profile (thin-file borrowers, tier II-IV cities) and inclusive finance mission.

Broad incumbents

• Bajaj Finserv: Large diversified Indian financial services group with MSME lending through Bajaj Finance. Operates broadly across consumer and business lending at significantly larger scale than Arthan, but overlaps in the MSME working capital segment.
• Spandana Sphoorty Financial: Listed Indian microfinance NBFC serving low-income women borrowers and micro-entrepreneurs across India. Significantly larger scale but comparable underlying customer base and inclusive finance positioning.
• CreditAccess Grameen: Major Indian microfinance institution lending to women borrowers in rural and semi-urban areas. Touches similar borrower profiles and geographies as Arthan but operates through joint liability group lending rather than individual MSME underwriting.

Emerging players

• M1xchange (Mynd Solutions): TReDS platform and supply chain finance provider focused on MSMEs and their dealers/suppliers. Comparable invoice discounting and supply chain finance product offering, though operating as a marketplace rather than direct NBFC.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/arthanfinance
• Facebookfacebook.com/arthanfinance
• LinkedInlinkedin.com/company/arthanfinance
• Instagraminstagram.com/arthanfinance

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Funding overview

Funding rounds3 records

Investors2 records

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

M&A

Investments

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

Frequently asked questions about Arthan Finance