Project detail - Arohan Financial Services Limited

Arohan Financial Services Limited

Status: Approved investment
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The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

Arohan Financial Services Limited is one of India’s leading Non-Bank Financial Company – Micro Finance Institutions that provides loans and other financial inclusion related products to low-income households with limited or no access to financial services. It is mostly active in economically less developed regions of Eastern and Northern India where it serves around 2 million low-income female borrowers. The Aavishkaar Group - with whom FMO has a long-standing relationship - is the promoter of Arohan.

What is our funding objective?

The capital infused is expected to catalyse the post-covid growth of Arohan. Furthermore, Arohan plans to complement its branch network with increased technology enabled delivery.

Why do we fund this investment?

The investment contributes to FMO's goals in Reduced Inequalities (SDG 10) and Gender Equality (SDG 5).

What is the Environmental and Social categorization rationale?

The project has been categorised as E&S Category C, in accordance with FMO’s Sustainability Policy. FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as, among other, over-indebtedness, transparency of interest rates, responsible pricing, are covered by FMO in other assessments such as Client Protection Principles (CPPs).

More investments

Date Total FMO financing
12/15/2023 INR 2080.00 MLN
Website customer/investment
Financial Institutions
Publication date
Effective date
Total FMO financing
INR 910.42 MLN
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)