Clean tech focused non-banking finance company (NBFC) Metafin has raised $5 million in a new round led by Prime Venture Partners and Varanium Capital.
The proceeds will be used to expand across states, improve its loan book, enhance its technology and IoT stack, and hire new talent.
Founded in 2019 by Chopra and Aditya Shah, Metafin specialises in providing rooftop solar loans to small businesses in rural and semi urban areas through its network of lending and installer partners.
The startup aims to address the market gap of providing affordable power solutions to over 5 million rural businesses.
The Gurugram- based firm, which is largely focused on Uttar Pradesh and Bihar, is planning to go deeper into these states and expand into Jharkhand and Rajasthan with this fundraise in the next 12 months.
As per media reports, Metafin is in advanced talks with banks and other financing partners to collaborate on further extending lending to this segment.
It has raised about $7 million in total funding as of now and has about $2.5 million of assets under management (AUM). It aims to reach $12-15 million AUM in the next 12 months.
Metafin has been supported by partners including IFC, 9Unicorns, Unitus Capital, Harvard i-Labs, Venture Catalysts and Smart Power India.