Fintech Venture Avanti to raise $150 million
The company is building a technology platform for loan products and capital of third parties to ride on and serve the needs of those without access to loans.
The company, incorporated in 2016 with philanthropic capital from Tata and Nilekani, is building a technology platform for loan products and capital of third parties to ride on and serve the needs of those without access to loans. It is a last-mile connectivity product that will ultimately connect institutions and banks with customers of small-ticket loans and insurance products. Avanti Finance has an NBFC licence and a microfinance institution licence, and has built up a Rs 50 crore loan book with its own capital as a proof of concept.
Rahul Gupta, the chief executive of Avanti and a former head for the Asean region for GE, told ET in an interview on Wednesday that he had made a first round of presentations to investors in the US and UK two months back. “The investor has to buy into the story of Avanti,” he added.
According to Gupta, Avanti currently works with a host of non-profit partners in eight states (26 districts), and has been using its own balance sheet to provide small loans to individuals. Avanti seeks to break away from the joint-liability-group model and offers small loans to individuals on the basis of assessment by the non-profit partners, which work with communities that lack access to financial products, especially loans.
Avanti is in talks with large banks and financial institutions to have their capital ride on the Avanti tech platform. “In future we can have various models where we offer the platform as a service to other financial institutions, banks, NBFCs or MFIs. We can share some of the capital burden as well as some of the risk, depending on the comfort of the partner,” Gupta added.