Arohan Financial Services, an Indian non-banking finance company that offers microloans to women, recently raised INR 155 crore (USD 24.1 million) from Maj Invest, a Danish asset management firm; Tano Capital, a US-based asset management firm focusing on emerging markets; Aavishkaar Venture Management Services, a venture capital firm targeting underserved regions of India; and multiple individuals. Arohan is planning to use the new cash to extend its operations in the states of Uttar Pradesh and Madhya Pradesh.
Maj Invest led the equity raise with a placement of INR 97 crore (USD 15.5 million). Aavishkaar, the microlender’s promoter, as well as Tano Capital and journalist Swaminathan Anklesaria Aiyar increased their pre-existing stakes in the company by undisclosed amounts. As a result of this investment, Maj Invest owns approximately 13 percent of Arohan, and Aavishkaar owns 32 percent.
Arohan, which was founded in 2006 in Kolkata, West Bengal, already offers a range of loan products in the states of West Bengal, Assam, Bihar, Jharkhand and Odisha. As of April 2017, Arohan had a gross loan portfolio of USD 161 million. As of 2015, the lender had 5.5 million active borrowers and USD 110 million in total assets.
By Chloe Miao and Ryan Gauthier, Research Associates
Sources and Additional Resources
Microlender Arohan Raises $24 mn from Denmark’s Maj Invest, Others
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