Arthan Finance, which lends to micro and small businesses, on Monday announced a Rs 50 crore fundraise from Incofin India Progress Fund and the Michael and Susan Dell Foundation.

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The fresh funding from Incofin and the foundation, a returning investor, will boost the company's expansion and technological progress, according to a statement.

The company, which specializes in loans for self-employed nano and micro entrepreneurs, has disbursed over Rs 500 crore to 20,000 borrowers in Maharashtra, Odisha, Andhra Pradesh, and Telangana with loan amounts ranging from Rs 2,000 to Rs 20 lakh.

The funding will help Arthan Finance grow its assets under management (AUM), expand geographic footprint, and invest in advanced AI and ML-based underwriting systems, the statement said.

It has raised Rs 83 crore till now, and the past funders include founders and angel investors apart from the Michael & Susan Dell Foundation.

Its founder and director Kunal Mehta termed the funding as crucial for the company's next phase of growth.

"Arthan has tremendous potential to demonstrate how social impact can be driven through an enviable blend of technology and inclusive financial services," Incofin's partner Aditya Bhandari said.