Introduction to Ashv Finance’s Series E Funding
In a significant development for India’s non-banking financial sector, Ashv Finance, an entity of the Aavishkaar Group, has successfully raised $10 million in a Series E funding round. This substantial investment, spearheaded by Encourage Capital, a New York-based private equity firm, marks a pivotal moment in the company’s growth trajectory.
Ashv Finance: At the Forefront of MSME Lending
Founded as Jain Sons Finlease, Ashv Finance has carved a niche in the financial sector by focusing on cash-flow-based loans for Micro, Small, and Medium Enterprises (MSMEs). As a non-banking financial company (NBFC), it has been instrumental in supporting the growth of small businesses across India.
The Impact of the Investment
This fresh influx of funds is earmarked for several strategic initiatives. Primarily, it will bolster Ashv Finance’s expansion efforts across India, enhancing its reach and capabilities. A significant portion of the investment is also dedicated to a novel venture in the realm of rooftop solar financing, targeting micro and small businesses. This move not only diversifies Ashv Finance’s portfolio but also aligns with India’s broader energy transition goals.
The Solar Finance Initiative
The most notable aspect of this funding round is Ashv Finance’s foray into rooftop solar financing. With an ambitious plan to disburse loans worth Rs 390 crore in the rooftop solar space over the next five years, Ashv Finance is set to make a substantial impact in the renewable energy sector. This initiative will help bridge the financing gap for small businesses looking to adopt solar energy, thereby contributing to the country’s sustainable development objectives.
Encourage Capital: A Partner in Growth
Encourage Capital, the lead investor in this round, has a history of making impactful investments that address critical social and environmental challenges. Their focus on clean energy finance and sustainable infrastructure makes them an ideal partner for Ashv Finance’s latest venture into solar finance.
Financial Performance and Future Outlook
As of now, Ashv Finance boasts an assets under management (AUM) portfolio of over Rs 1,000 crore and operates in approximately 180 locations across 15 states in India. The company has demonstrated a strong financial performance, turning profitable since FY19 and registering a net profit of Rs 5.5 crore in FY22. With this new funding, Ashv aims to scale its AUM to Rs 1,800-2,000 crore, a testament to its growth potential and the robustness of its business model.
Conclusion: A New Chapter for Ashv and MSMEs
Ashv Finance’s Series E funding is more than just a financial boost; it represents a strategic shift towards sustainable business practices. By integrating solar financing into its portfolio, Ashv is poised to play a crucial role in India’s renewable energy landscape, while continuing to empower the MSME sector.
