Ashv Finance

About Ashv Finance

Ashv Finance Limited, a non-banking financial company (NBFC) headquartered in Mumbai, operates as a key financial partner to India's micro, small, and medium enterprises (MSMEs). Previously known as Jain Sons Finlease Ltd, the company was incorporated in 1998 and rebranded to Ashv Finance in October 2020. It is part of the Aavishkaar Group, an impact-focused investor dedicated to supporting sustainable enterprises.

The company was founded by Vineet Chandra Rai. The current leadership includes Nikesh Kumar Sinha as Director and CEO, who brings over two decades of banking experience from Axis Bank, where he managed a substantial enterprise loan portfolio. His background in corporate banking and as Deputy CEO of Axis Bank's Singapore operations has been instrumental in shaping Ashv's strategic direction. In mid-FY19, under new senior management, Ashv Finance underwent a significant business model transformation. It pivoted from venture debt financing with high ticket sizes to focusing primarily on small-ticket, unsecured business loans for MSMEs. This strategic shift was aimed at de-risking the portfolio and addressing the credit gap for underbanked businesses.

Ashv Finance's business model centers on providing collateral-free, flexible financing solutions to small and growing businesses across India. Revenue is generated from the interest on loans disbursed. The company utilizes a 'phygital' model, combining a physical presence in over 180 locations across 15 states with a technology-led approach for underwriting and service delivery. Its core clientele consists of MSMEs in sectors like financial services, clean energy, healthcare, and agriculture. Ashv Finance makes money through interest income on its loan portfolio, which includes products like unsecured business loans, GST surrogate loans, and loans based on banking history. Recently, the company has expanded its offerings to include financing for rooftop solar installations for micro and small businesses. The firm also engages in co-lending partnerships, notably with HDFC Bank, to broaden its reach to MSEs.

The company's product suite is designed to meet the diverse working capital and growth funding needs of MSMEs. Offerings include collateral-free loans up to ₹75 lakhs for repeat customers, with flexible tenures. A key feature is its cash-flow-based credit evaluation, which allows it to serve businesses that may lack substantial assets for traditional secured lending. This approach, supported by modern analytics, enables a streamlined and hassle-free loan process, from application to disbursement. Since its pivot, the company has successfully raised significant capital, including a Series E funding round of $11 million in December 2023, to fuel its expansion and technology enhancement.