The round also saw participation from existing investors LeapFrog Investment and Dvara Trust, it said in a statement. The company’s other major shareholder Accion participated with additional funds in 2018.
Further, Dvara is also looking to raise more than Rs 600 crore debt from a variety of sources including banks, NBFCs, NCDs, and ECB, it added.
The company said that the fresh funds will be used for the acquisition of Varam Capital Pvt Ltd, investing in enhancing the fintech capability of the company and strengthening the management team. It announced the acquisition of Varam last month.
Dvara also plans to expand its operations in new states – Jharkhand and Chattisgarh – and deepen presence in Tamil Nadu, Karnataka, Odisha, and Uttarakand. In addition, the funds would be utilised for introducing new products and services such as affordable micro housing loan product and in deepening its micro-enterprise loans and jewel loans portfolio.
Samir Shah, executive vice chair & group president, Dvara Trust said: “This infusion of new capital from a new investor and existing shareholders will significantly strengthen our existing presence and accelerate our growth into newer geographies as envisaged in our business plan. The funds will help us deliver highly personalised wealth management solutions to our rural customers across a range of touch points.”
“Dvara KGFS’ use of tech-n-touch to reach to more than 850,000 clients makes an important contribution to Accion’s investment portfolio and our efforts to reach the underserved in India,” Michael Schlein, President and CEO, Accion, said.
After strengthening the entity following the acquisition of Varam Capital, Dvara KGFS will keenly focus on organic and inorganic growth to execute its business plan, it said.
Dvara recorded revenues of Rs 163 crore for the year 2018-19, and has assets under management worth Rs 760 crore.
ICICI Securities acted as exclusive financial advisor on this funding.