Svasti Microfinance raises USD 5.7 Million in Funding for Next Stage of Growth
The funding will support Svasti’s expansion into a broader range of financial products, while strengthening its technology platform and supporting continued growth
Abler Nordic has participated in a USD 5.7 million (INR 47.5 crore) investment round in Svasti Microfinance, a Mumbai-based financial services provider focused on underserved women entrepreneurs, alongside fellow existing investor, Adar Poonawalla Group. The capital raised includes both equity and subordinated debt.
Abler Nordic first invested in Svasti in 2018 through Abler Nordic Fund III and we are excited to continue to back the company as it grows.
The funding will support Svasti as it expands beyond traditional Joint Liability Group lending to offer a broader range of financial products, including secured business loans to micro-entrepreneurs. It will also help strengthen the company’s technology platform and support continued growth in its loan portfolio. Svasti is targeting a loan portfolio of USD 170 million (INR 1,400 crore) by March 2027.
Founded in 2010, Svasti Microfinance is an RBI-licensed NBFC-MFI — a regulated non-bank financial institution focused on microfinance in India. The company operates 150 branches across seven states and employs more than 1,800 staff, providing responsible credit and health insurance linked to its loans to low-income households and micro-enterprises. Many of Svasti’s customers operate small businesses in the informal economy — from tailoring and food services to retail and home-based businesses — where access to formal finance remains limited.
A key part of Svasti’s growth strategy is SvasTech, its proprietary fintech platform, which supports end-to-end digital lending operations. The platform will help support the rollout of new financial products and facilitate co-lending partnerships with banks and non-banking financial institutions.
Built with embedded artificial intelligence and machine learning, the platform also helps automate processes and improve operational efficiency, while using data analytics to strengthen credit underwriting in the informal micro-enterprise sector, where borrowers often lack formal income documentation or collateral.
Commenting on the investment, Arunkumar Padmanabhan, Co-Founder, Svasti Microfinance, said:
“This investment is a powerful validation of our vision to be a diversified financial services provider. By leveraging our superior proprietary technology and analytics, we are building a top-tier consumer finance business that marries high profitability with deep social impact. We remain committed to fulfilling the ‘Right to Finance’ for millions of women across India, empowered by a team of 1,800 professionals and a tech stack that is built for the future. We plan to grow to reach a portfolio of Rs. 1400 Cr (approximately USD 170 million) across our 150 branches in seven States by March 2027.”
Smriti Chandra, Regional Director – Asia, Abler Nordic, added:
“We have been partners with Svasti since 2018 and have seen the Company grow from strength to strength. Over the years, they have demonstrated resilience through multiple crises while staying true to their core ethos. Their strong focus on customer needs is driven by a passionate team—from senior management to field officers—and supported by technology-enabled operations. This gives us confidence in the Company as we continue to support them at a critical time for the sector.”
We look forward to continuing our partnership with Svasti as it scales access to responsible finance for underserved entrepreneurs across India!
Read more about Svasti Microfinance: https://www.svasti.in/
