By: 10 April 2024

The round was led by LeapFrog Investments and supported by Aavishkaar Capital

Electronica Finance Limited lands $48m in Series B round funding

Electronica Finance Limited (EFL) has raised $48m during its Series B funding round led by UK-based LeapFrog Investments and supported by Aavishkaar Capital, an Indian investment firm.

Headquartered in Pune, India, EFL provides products tailored specifically to India’s small and medium enterprises (SME) sector, including rooftop solar loans, machine loans and working capital loans. The organisation also offers micro-loans secured against properties in semi-urban and rural areas of the country. This is part of an endeavour to foster sustainable financial inclusion across India.

The move comes a year after Indian firm PhonePE raised $100m in funding.

EFL says it plans to utilise this new capital injection to strengthen the company’s balance sheet and advance into its next phase of rapid expansion. The raise will also be allocated towards enhancing its SME financing in India’s high-growth potential manufacturing sector.

Shilpa Pophale, managing director and chief executive officer of Electronica Finance Limited, said, “With a strong track record and deep expertise in this segment, EFL remains committed to providing technology-based solutions and financial support to SMEs that are powering India’s unprecedented economic growth. This association with two leading social impact investors can help us support small businesses to thrive and deliver resilient, low-carbon growth.”

Stewart Langdon, partner at LeapFrog Investments, said, “Electronica Finance Limited is transforming India’s SME sector through its sustainable financing solutions. Their funding plays a vital role in financial inclusion and climate resilience for small business owners who have long been overlooked by banks. The benefits of these loans go beyond the small business owner, catalysing job creation and supporting households and communities. We are delighted to have secured this fundraising round for Electronica Finance Limited and look forward to supporting Shilpa and the team as they continue to scale-up their presence across the country.”

Anurag Agrawal, partner at Aavishkaar Capital, said, “Electronica Finance Ltd has a proven track-record of providing innovative financing solutions for MSMEs and we are excited to be their partner as they enter their next phase of growth. Aavishkaar Capital’s India Fund VI is committed to channel capital to resilient businesses solving large problems and EFL’s diverse portfolio across MSME, climate and rural financing brings significant opportunity to bolster inclusive development.”

Image: Electronica Finance Limited

Robert Welbourn
Robert Welbourn is an experienced financial writer. He has worked for a number of high street banks and trading platforms. He's also a published author and freelance writer and editor.