Arohan Financial Services – Dutch Development Bank FMO Proposes $30 Million Investment

Expert Analysis:

• FMO (Dutch Entrepreneurial Development Bank) has proposed a $30 million (around ₹250 crore) investment in Arohan Financial Services through 3-year senior secured listed Non-Convertible Debentures (NCDs) to support the NBFC-MFI's next phase of growth.

• The proposed funding will be used to expand Arohan's loan portfolio, particularly across underpenetrated markets in North and East India, furthering its financial inclusion strategy focused on low-income households and women entrepreneurs.

• As of December 2025, Arohan served 1.95 million customers through a network of 1,000+ branches across 17 states, with an AUM exceeding $660 million, making it one of India's leading microfinance institutions.

• This marks another milestone in the long-standing relationship between FMO and Arohan, with the development finance institution having previously backed the company through debt investments in 2023.

• The proposed investment reinforces global institutional confidence in Arohan's business model and supports its objective of expanding access to formal credit in underserved regions while strengthening financial inclusion.