Arohan Financial Services Limited
Status: Proposed investmentWhy disclosure?
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In case of questions
We welcome feedback on this proposed investment opportunity for FMO. The ending of the proposed investment phase is indicated on the right side of this page. In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
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 prospective customer?
Arohan Financial Services Limited (Arohan) is a technology-enabled Indian microfinance institution (NBFC-MFI) headquartered in Kolkata, India and is a part of the impact-focused Aavishkaar Group. The company drives financial inclusion by providing credit to 1.95 million low-income clients, focusing on empowering female entrepreneurs through, among others, a peer-guaranteed Joint Liability Group (JLG) lending framework. Backed by major global development finance institutions like FMO, IFU, and Maj Invest, Arohan manages an Assets Under Management (AUM) portfolio exceeding USD 660 million across 1.000+ branches in 17 Indian states, employing more than 9.000 employees, as of December 31, 2025. Arohan is categorized as a Frequent Borrower for which a Frequent Borrower Framework is in place.
What is our funding objective?
The proposed transaction is a 3-year, USD 30mln equivalent in INR, senior, secured, listed Non-Convertible Debentures (NCD) which shall be used to further grow Arohan’s loan portfolio.
Why do we want to fund this investment?
India continues to face a significant gap in access to formal credit for low-income and rural households, particularly women entrepreneurs. Arohan’s JLG-based model enables targeted outreach to underserved segments in rural and semi-urban areas. This investment supports Arohan’s expansion, enhancing financial inclusion and driving outreach in underpenetrated regions of North and East India. FMO’s investment aims to support activities that contribute to Inclusive growth contributing to SDG 10.
What is the Environmental and Social categorization rationale?
The E&S risk category for the client is C. 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 others, over-indebtedness, transparency of interest rates, and responsible pricing, are covered by FMO in other assessments such as the Client Protection Principles (CPPs). In case of high contextual risk, a human right assessment can be carried out.
More investments
| Date | Total FMO financing |
|---|---|
| 12/15/2023 | INR 2080.00 MLN |
| 2/7/2023 | INR 910.42 MLN |
- Website customer/investment
- https://www.arohan.in
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 7/6/2026
- Deadline for feedback
- 8/5/2026
- Total FMO financing
- USD 30.00 MLN
- Funding
- FMO NV
-
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) - C