New Delhi, July 16 -- Arohan Financial Services Ltd, which is backed by private equity backers such as Tano Capital, Maj Invest and TR Capital, has tapped an offshore investor for debt capital.
The Kolkata-headquartered company is engaged in the business of microlending, mainly to women borrowers, and operates on the joint liability group (JLG) model.
Arohan Financial will raise $30 million (around Rs 289 crore) from Dutch entrepreneurial development bank FMO via listed senior, secured listed non-convertible debentures with a tenor of three years. The non-bank lender will utilise these funds to grow its loan book.
This investment will support Arohan's expansion, enhancing financial inclusion and driving outreach in underpenetrated regions of North and East India, a document accessed by VCCircle showed.
The non-banking financial company (NBFC) was set up through the acquisition of an existing non-bank lender ANG Resources Pvt Ltd, with the support of Bellwether Microfinance Fund. The company's name was changed to Arohan Financial in March 2008.
Arohan became a part of the Aavishkar Group in September 2012.
Its net profit rose to Rs 122 crore in the financial year ended March 2026 from around Rs 110 crore a year ago.
The assets under management rose slightly to Rs 6,308 crore as on December 31 from Rs 6,003 crore at the end of FY25, according to a document accessed by VCCircle.
Earlier this year, VCCircle reported that Arohan Financial has revitalised its plan to go public. The company's previous plan to go public had been derailed due to market conditions and the central bank's action against it and three other NBFCs.
Broadly, the IPO is looking to raise Rs 1,500 crore (around $167 million) by way of a fresh issue and an offer for sale (OFS). Early investors such as Michael and Susan Dell Foundation, Goodwill Fund, Maj Invest, Tano Capital and TR Capital may shed stake in the OFS. The promoter Aavishkar will retain its stake.
Published by HT Digital Content Services with permission from VC Circle.