Micro MSME Fintech ARTH Raises $2.5 Million
The fresh fund will be used for strengthening the technology capabilities and expanding the suite of financial services being offered to be a single point platform for micro MSMEs
ARTH, a micro MSME fintech, has raised $2.5 million in a funding round led by DEG, MIT alumni and US and Canadian angel investors. The fresh fund will be used to expand the suite of financial services being offered to ultimately be a single point platform for micro MSMEs. It will also be used for strengthening the technology capabilities and building robust risk management systems to meet the scale requirements.
"ARTH is on a mission to engage, support and service millions of capital-starved underserved entrepreneurs through a well-balanced data-driven phydigital distribution model that works for the segment. At ARTH, we are trying to bring this refreshing change in financial services approach to being a proactive financing partner to the micro MSME," said Shweta Aprameya, founder, ARTH.
The company currently provides well-priced working capital, embedded insurance and income generating payment services through its financial services platform especially designed for micro MSMEs. The company claimed that it has already facilitated 3,50,000 credit and insurance across India, out of whom are new to formal credit. The company plans to scale to 1 million nano and micro business owners through its phydigital model.
"ARTH has already shown strong track record as a young startup with a strong business and good governance. We are delighted to support the leadership to take this mission forward and impact the success of micro MSMEs and the lives of their owners in India," said Petra Kotte, Head of DEG's division banking and German business.
"ARTH team has some impressive accomplishments during the pandemic with various foundations and impact agencies to support the customers. Shweta has the right blend of business and technology acumen supported by an impact-driven purpose and I am happy to support her and ARTH team in this journey," said Brian. J. Bailey, a US-based fintech executive and investor.
Founded in 2018 by Shweta Aprameya, ARTH enables access to affordable financial services and livelihood support for the last-mile unbanked and underserved micro MSME. Its unique data and distribution model is well placed to offer credit, payment, insurance and welfare support to micro entrepreneurs in local markets. ARTH aims to become the provider of choice in financial services for its customer segment.