New Delhi, Apr 4 (KNN) Electronica Finance Ltd (EFL), a Pune-based firm focused on lending to micro, small and medium enterprises (MSMEs), has secured a massive Rs 400 crore in an equity Series B funding round.

The investment was led by LeapFrog Investments, a prominent impact investor, along with participation from other investors like Aavishkaar Capital and US-based Encourage Capital.

This substantial injection of funds will significantly strengthen EFL's balance sheet and lay the foundation for accelerated growth and expansion in the coming phase. The newly raised capital will be strategically deployed to boost financing for MSMEs operating in India's high-potential manufacturing segment.

EFL caters to the credit needs of small businesses through a range of loan products including machine financing, rooftop solar installations, working capital loans, and microloans secured against property.

With a focus on semi-urban and rural regions, the company aims to drive sustainable financial inclusion.

Shilpa Pophale, Managing Director and CEO of EFL, highlighted the importance of this association with leading social impact investors like LeapFrog and Aavishkaar.

She stated, "This partnership will enable us to effectively support small manufacturing businesses, facilitating their growth while promoting resilient and low-carbon economic development."

The influx of Rs 400 crore in funding is set to provide a substantial boost to EFL's efforts in catering to the financing requirements of MSMEs in India's burgeoning manufacturing sector.

This strategic move aligns with the nation's broader goal of strengthening its manufacturing capabilities and enhancing its position as a global manufacturing powerhouse.

(KNN Bureau)