Ashv Finance raises $10m in Series E funding led by Encourage Capital

By Gloria Mathias

MSME Lender Ashv Finance has received $10 million in funding from Encourage Capital in the Series E round. Intellecap acted as the sole advisor to Ashv Finance for this transaction.

Ashv Finance, a Mumbai headquartered NBFC offering cash-flow-based business loans to Micro, Small and Medium Enterprises, and part of the Aavishkaar Group.

Ashv provides collateral-free, flexible financing for small and growing businesses and empowers them with loans designed to unlock their growth potential. Their vision is to power the big ambitions of small businesses across the geographies and markets of India. It has built an AUM of INR 10 billion through its presence in more than 180 locations across 15 states in India.

The capital infusion will be used to deepen its presence across the country. With Encourage Capital’s financial and technical support, the company will launch an important new initiative to finance rooftop solar for micro and small businesses and thereby make a significant contribution to India’s energy transition goals.

Nikesh Kumar Sinha, MD, Ashv Finance said, “I am delighted to welcome Encourage Capital on board as we aim to accelerate our expansion and strengthen our presence whilst bolstering our technology and data system. This investment marks our foray into rooftop Solar finance, something we have been contemplating for a while to commence the verticalization of businesses within Ashv into socially relevant sectors in line with the Aavishkaar group ethos and focus. Ashv aims to disburse 390crs of loans to micro & small enterprises in the rooftop solar space in the next 5 years. This Capital will also help us reach out to more and more micro & small businesses and scale our AUM to the next levels of 1800-2000 crs.”

Gagandeep Bakshi, CFA, Partner & Director, Investment Banking, Intellecap, said, “We are thrilled to have played a significant role in advising Ashv Finance. This fundraising strengthens Ashv Finance’s ability to support the credit needs of small and growing businesses with collateral-free loans & address this large whitespace with its superior technology and credit analytics”.