Small business lender Kinara Capital will use the new investment of $10 million for expansion of MSME financial inclusion across manufacturing, trading, and services sectors in India.
Kinara Capital, a lender to small businesses, on Monday announced that it had raised $10 million (Rs 74 crores) from IndusInd Bank with a 100 percent guarantee from the US International Development Finance Corporation (DFC).
Existing investors Gaja Capital, GAWA Capital, Michael & Susan Dell Foundation(MSDF), and also participated in this round, which is a part of a debt and equity round of Rs 100 crore.
According to a press statement, this investment will be used by Kinara Capital towards the expansion of MSME financial inclusion across manufacturing, trading, and services sectors in India.
The $10 million investment for onward lending to small business entrepreneurs will be deployed over five years from IndusInd Bank’s Impact Investing division with backing from DFC, part of the US federal government and an emerging markets impact leader. This three-way partnership between Kinara Capital, IndusInd Bank, and DFC unites the organisations’ shared goals to promote entrepreneurship, financial inclusion, and job creation.
Speaking about its partnership with IndusInd and DFC, Hardika Shah, Founder and CEO, Kinara Capital said,
“Our partnership with IndusInd and DFC underscores our shared commitment to ease the credit hurdle faced by most small business entrepreneurs in India.”
“MSMEs galvanise India’s economy with income generation and job creation, and there is an ever-increasing demand for financing for businesses to rebuild and grow this year. This investment from IndusInd Bank and DFC will accelerate financial inclusion of small businesses, thereby invigorating local economies,” she added.
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Fast and flexible loans
Founded in 2011, Kinara Capital provides fast and flexible loans of Rs 2-25 lakh without taking collateral from small business entrepreneurs.
Bengaluru-based Kinara Capital is a digital platform and helps to eliminate paperwork and save time for both customers and employees to fast-track the credit decision process. It claims to have disbursed Rs 2,000 crore so far across 56,000+ collateral-free small business loans.
Operational with 110 branches in 90+ cities, Kinara Capital boasts a women-majority management team and is globally recognised for its innovations.
Commenting on the investment, Loren Rodwin, Managing Director, Social Enterprise Finance Team, Office of Development Credit at U.S. International Development Finance Corporation (DFC), said, “We hold the organisations that we fund to a very high standard and Kinara Capital is a role model when it comes to last-mile delivery. Commitment towards financial inclusion from Kinara Capital has made it possible for us to collaboratively help India’s small business entrepreneurs. We are motivated by the high potential and the high prospects of the diverse MSME sector in India and proud to partner with both IndusInd and Kinara Capital.”
Taken from: yourstory.com