Fintech platform ARTH has raised $2.5 million in Pre-series A funding round funding led by DEG and MIT Alumni network.
The startup plans to use the funds to strengthen ARTH’s technology infrastructure, expand its offerings and build a risk management system.
Gurugram-based ARTH was founded in 2018 by Shweta Aprameya, It provides collateral-free loans to micro, small and medium-sized enterprises in rural areas as well as urban cities of India.
Its primary focus is to increase access to affordable formal financial services for these businesses to create a transformative impact on their lives with a focus on gender financing.
“We are one of the first movers in the market who have been able to build an integrated credit and payment solution for the micro-MSME through last mile collaborative partnership model. The model also reduces the information gap that exists for underwriting the segment and hence improve access to formal credit. For financial institutions like ours, the model allows us to go deeper and faster in Indian markets with well evolved data and decision-making tools”, said, Shweta Aprameya, Founder ARTH.
The startup claims to have offered 3.5 lakh loans and insurance cover to micro-entrepreneurs so far.
The startup plans to reach out to 1 million nano and micro-business owners through its fidigital model, which provides both credit and payment services with an aim to become a leading revenue-generating startup for the MSME segment in India.
“DEG is happy to fund the growth of ARTH. Access to affordable credit for micro businesses is a huge gap in India and the right product can bring large scale impact in the sector. Thus a contribution is also made to the UN-Sustainable Development Goals (SDG), for example a reduction of poverty and creation of decent jobs,” said, Petra Kotte, Head of DEG’s division Banking & German Business.
Founded by Shweta Aprameya, ARTH is an impact-led fintech company delivering access to financial and livelihood services to micro-entrepreneurs in India. The company works with the community to create more inclusive and sustainable growth opportunities for the underserved.
ARTH aims to redefine the way micro-customers discover financial services in India by creating an enabling ecosystem for them to access digital financial products in an easy and flexible way. It offers services under its financial inclusion initiatives to support new and growing businesses, especially those involving women.
It seeks to bring about significant positive change not only in the lives of people but also in the structure of the local economy at the grass-root level. Every time ARTH extends a loan it enables someone to grow their business and create better opportunities for themselves as well as for others. That ripple effect has the power to positively shape the future of a family or an entire community.