A tech-enabled non-banking finance startup called Avanti Finance announced that it has raised $24 million from investors including Rabo Partnerships and IDH Farmfit Fund.

IDH Farmfit Fund, an impact fund, is focused on smallholder farmers, whereas Rabo Partnerships, a fully owned subsidiary of the Dutch bank Rabobank Group, is focused on financial inclusion and rural development.

Oikocredit and NRJN Trust, the family office of Nandan Nilekani, participated in the investment round as returning investors. The investment is consistent with Rabo Partnerships' goal of giving smallholder farmers data-driven finance solutions via regional cooperatives and service providers.

“This investment will support ongoing investments in our deep tech platform to develop fit for purpose hyperlocal credit products, automated data and social signals driven underwriting for data-dark customers, amplify our partnership network and accelerate co-lending programmes,” Rahul Gupta, CEO of Avanti Finance, said.

According to Gupta, Avanti Finance has given more over Rs 1,300 crore in loans to 2,75,000 people. A total of 65 people work for it. It has a team of 65 employees. “We are now ready to take the leap towards 1.5 million served households with a targeted AUM of over 2,500 crore in the next 24 months,” he added.

“Due to the large number of farmers, the digital infrastructure and the ICT talent available, the Indian market is the ideal place to test and scale innovative solutions for food transition and creating a more inclusive society. This investment supports our strategy of promoting data-driven finance solutions through local cooperatives and service providers, which is close to our roots as a cooperative bank," Marianne Schoemaker, CEO, Rabo Partnerships, Rabobank said.

The investment, according to IDH Farmfit Fund investment director Miguel Tamayo Maertens, supports the fund's aim to invest in cutting-edge and effective solutions that enable smallholder farmers to access financing and linked services to improve lives.

IDH Farmfit Fund is a €100 million impact investment fund that is managed by IDH, The Sustainable Trade Initiative, and supported by a group of partners that includes commercial banks, development banks, governmental organisations, and value chain companies. Its goal is to increase smallholders' access to affordable financing.

Avanti Finance was founded in 2016 by former Tata Sons chairman Ratan Tata, Infosys cofounder Nandan Nilekani, and economist Vijay Kelkar. Avanti Finance offers over 180 unique loan packages to accommodate various forms of income and livelihood.

Currently, the firm has 75 partners, including social businesses, financial institutions, corporate partners, agritech companies, and Farmer Producer Organizations (FPOs) that operate in 24 Indian states and over 300 districts.