LeapFrog Investments and Aavishkaar Capital have jointly invested $48 million in Electronica Finance Limited, which provides loans to micro, small, and medium enterprises.
This marks the Series B round of funding for the Pune-headquartered company that plans to increase its financing for MSMEs in the high-growth manufacturing segment in India.
“The association with two leading social impact investors can help us support small businesses to thrive and deliver resilient, low-carbon growth,” said Shilpa Pophale, Managing Director & CEO, Electronica Finance.
The company claims to have more than tripled its assets under management (AUM) over the past five years to about Rs 4,000 crore.
Going forward, over the next three years, Electronica Finance said its AUM is projected to increase with a compound annual growth rate (CAGR) of around 35%.
Currently, Electronica Finance operates 215 branches across 15 states in India. It offers a diverse range of financial products to MSMEs in India. These include machine loans, rooftop solar loans, working capital loans, besides micro loans against property in semi-urban and rural India.
Electronica Finance last raised $15 million in debt from Global Climate Partnership Fund in 2023. Prior to that, it amassed Rs 100 crore from Encourage Capital in 2019.