India’s Electronica Finance Limited lands $48m in Series B round
Electronica Finance Limited (EFL) has raised $48 million during its Series B funding round led by UK-based LeapFrog Investments and supported by Aavishkaar Capital, an Indian investment firm.
EFL lands $48m in Series B funding round
Headquartered in Pune, India, EFL provides products tailored specifically to India’s MSME sector, including rooftop solar loans, machine loans and working capital loans. Additionally, the company also offers micro-loans against properties in semi-urban and rural areas of the country, in an endeavour to foster sustainable financial inclusion.
It says it plans to leverage its latest capital injection, which is anticipated to close after the 30-day regulatory notice period, to “strengthen the company’s balance sheet” and advance its next “phase of rapid expansion”.
Moreover, the raise will be allocated towards enhancing its MSME financing in India’s “high-growth potential” manufacturing sector, states the firm.
Stewart Langdon, a partner at LeapFrog Investments, explains that EFL presented an attractive investment opportunity owing to the “vital role” the company fulfils in promoting “financial inclusion and climate resilience” for SMEs that have historically been neglected by traditional banks.
“The benefits of these loans go beyond the small business owner, catalysing job creation and supporting households and communities.”
EFL adds to the expanding roster of fintech enterprises unveiling Series B funding rounds this year. Notable examples include Canadian paytech Helcim’s $20 million raise, the €36 million secured by Dutch cybersecurity startup Eye Security, and the recent $100 million funding raised by Nigerian mobility firm Moove.
