Micro Fintech MSME ARTH has informed that it has secured $2.5 million in funding led by DEG – Deutsche Entwicklungs- und Investitionsgesellschaft / subsidiary of KfW, MIT Alumni and US and Canadian angel investors.
“This brings the total funding raised by ARTH to $3.5 million with the initial personal investment made by the founder, friends and family. The new round of funding will be used to expand the range of financial services offered to ultimately to be a one-stop platform for micro-MSMEs. The funds will also be used to build technology capabilities and put in place robust risk management systems to meet scale requirements,” a company statement read.
Commenting on the fundraiser, Shweta Aprameya, Founder of ARTH, said, “ARTH is on a mission to engage, support and serve millions of capital underserved entrepreneurs through a well-rounded, phydigital distribution model and data-driven that works for the segment.I believe now is the time for us to embrace this responsibility with the client and design services to suit their complex business environment.At ARTH, we are trying to bring this refreshing change in the financial services approach to becoming a proactive financing partner for micro-MSMEs.”
“We are one of the first market players to have been able to create an integrated credit and payment solution for micro-MSMEs through a last mile collaborative partnership model. The model also reduces the lack of information that exists for segment underwriting and thereby improves access to formal credit.For financial institutions like ours, the model allows us to reach deeper and faster into Indian markets with data and taking tools well-evolved decision-making,” she added.
Petra Kotte, Head of Banking & German Business at DEG, said: “DEG is pleased to fund ARTH’s growth. Access to affordable credit for micro-enterprises is a huge gap in India and the right product can have a large-scale impact in the sector. In this way, a contribution is also made to the UN Sustainable Development Goals (SDGs), for example a reduction in poverty and the creation of decent jobs. . ARTH has already proven itself as a young start-up with a solid business base and good governance. We are excited to support leaders to advance this mission and impact the success of micro-MSMEs and the lives of their owners in India. »
Brian J. Bailey, a US-based Fintech executive and early stage investor, said, “ARTH has been able to build a strong business and customer base even during COVID. The very nature of their model, to keep the “customer” at the heart of their business with a well-rounded technology and partnership delivery model that differentiates them from most other Fintech lending players in the market.The ARTH Team has made impressive achievements during the pandemic with various foundations and impact agencies to support clients. support, as well as the ARTH team, in this journey.”
Ritesh Malik, Investor and Advisor, said: “I can honestly say that no investment decision so far has brought me as much personal satisfaction as the one I recently made at ARTH. After spending time with the founder and her team, I was convinced of the huge need for a fintech service like ARTH in a rapidly expanding economy like India.ARTH is based on a philosophy that provides an opportunity for millions of Indian women who run micro-enterprises.ARTH facilitates their access to capital, makes them part of a sophisticated 21st century digital network and provides them with continued ownership.This level of support for a portion of Indian women who wish to stand standing up, working hard and contributing to their family and community, will have an impact far beyond just the bottom lines.”