Electronica Finance Ltd, which provides loans to micro, small and medium enterprises (MSME), Thursday said it has raised $48 million (Rs 400 crore) in a Series B funding round.

The equity round was led by global impact investor LeapFrog Investments, with participation from Aavishkaar Capital.

The funding will allow the Pune-based company to scale up MSME credit, rooftop solar financing and micro loan-against-property (LAP) businesses, according to a press release.

The funds secured will greatly strengthen the company’s balance sheet and provide the foundation for another phase of rapid expansion, said Electronica Finance.

Electronica Finance, a part of the SRP Electronica Group, was incorporated in 1990. The company’s offerings include machine loans, business loans, rooftop solar loans, loans against property, institutional lending, working capital loans and loans to micro-enterprises.

Electronica Finance currently has Rs 4,000 crore in assets under management (AUM) and operates 215 branches across 15 states.

“The association with two leading social impact investors can help us support small businesses to thrive and deliver resilient, low-carbon growth,” said Shilpa Pophale, managing director and chief executive officer of the company.

The company, last year, raised $15 million in debt from impact investor Global Climate Partnership Fund (GCPF). It had also raised Rs 100 crore in funding from New York-based Encourage Capital in 2019.

“The benefits of these loans go beyond the small business owner, catalysing job creation and supporting households and communities,” said Stewart Langdon, partner, LeapFrog Investments.