Pahal Financial Services has raised a funding of Rs 147 crore in a round led by Proparco, the private sector financing subsidiary of the French Development Agency (AFD), along with existing investor, Gawa Capital. The investment will support Pahal’s mission to expand its outreach, strengthen its technology infrastructure and enhance financial access for low-income households, particularly women entrepreneurs, the companies said in a joint statement.
Kartik Mehta and Purvi Bhavsar, Co-Founders, Pahal Financial Services, said in the statement, “We are excited to welcome Proparco as an equity partner in Pahal. Proparco’s expertise on climate and ESG aspects will help to propel Pahal’s growth over the coming years. This funding will play a pivotal role in accelerating our growth, expanding our geographic presence and strengthening our ability to serve more micro-entrepreneurs, particularly women, who are the backbone of rural economies. With Proparco’s support, we aim to deepen our social impact and reinforce our commitment to responsible and sustainable finance.”
Proparco’s investment in Pahal underscores its commitment to support financial institutions that drive economic and social development in emerging markets.
Emmanuelle Riedel-Drouin, Global Head—Lending Operations, Proparco, stated, “This marks a significant step forward for women’s empowerment in India. By supporting Pahal’s expansion, we aim to unlock financial access for under-served communities and promote long-term economic resilience and sustainable growth. Our support for Pahal’s expansion is a direct reflection of the shared India–France commitment, as outlined in the Modi–Macron joint statement, to foster inclusive growth and improve financial access for underserved populations.”
With a focus on responsible lending to women-led borrowers and customer-centric financial solutions, Pahal provides micro and MSME loans tailored to the unique needs of low-income households, helping them to invest in businesses, education and healthcare. Besides, Pahal is one of the early institutions to design innovative solutions on climate finance keeping the vulnerability of this segment to climate risks in mind. The company’s efforts align with the Indian government’s financial inclusion agenda and contribute to the broader Sustainable Development Goals (SDGs), the statement added.
Commenting on the deal, Luca Torre, Co-Founder and CEO, Gawa Capital, also said in the statement, “We are delighted to continue our partnership with Pahal Financial Services as they expand their critical role in fostering financial inclusion across India. This investment reaffirms our commitment to support responsible and sustainable microfinance institutions that empower underserved communities, particularly women entrepreneurs. Pahal’s strong governance, customer-centric approach and focus on impact-driven lending make them a key player in driving economic resilience and social progress. We look forward to see their continued growth and positive impact on the lives of micro-entrepreneurs across the country.”
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