Aavishkaar Group-backed Arohan Financial Services set to launch IPO in next 12–15 months

Aavishkaar Group-backed Arohan Financial Services is set to launch its initial public offering (IPO) in the next 12–15 months, said Vineet Rai, Founder and Chairman of Aavishkaar, in an interaction with Business Today. The East India-based microfinance lender is expected to launch its primary offering by FY27.

Arohan Financial Services is a leading microfinance lender that focuses on low-income states in India. The company provides loans and other financial solutions to underserved segments. It is the fifth-largest microfinance institution in India, with women forming the largest customer base. The company has key shareholders such as ASK Financial Holdings and the Michael & Susan Dell Foundation, among others.

For the financial year ended March 31, 2025, Arohan Financial Services reported a net profit of Rs 110 crore, while total revenue stood at Rs 1,581 crore. Its bottom line was impacted by higher provisions and contingencies as gross and net NPAs increased marginally to 2.77 per cent (from 1.64 per cent in FY24) and 0.47 per cent (from nil in FY24), respectively, in FY25.

According to Rai, Aavishkaar Group has invested in as many as 87 startups and has exited more than 50 of them in India and globally. The group has been among the investors in companies such as Suryoday Small Finance Bank, Utkarsh Small Finance Bank, CreditAccess Grameen and Equitas Small Finance Bank. He claimed a gross IRR of 26 per cent from successful investments.

Aavishkaar Group currently has assets under management (AUM) of Rs 11,000 crore. According to Rai, the group has been able to generate returns of 1.8–2 times on its investments since its inception 24 years ago. The group focuses on social impact, particularly in eastern Uttar Pradesh.