Kinara Capital on Monday said it has secured $10 million in funding from IndusInd Bank, with a 100% guarantee from the US International Development Finance Corporation (DFC).
“This is part of a debt and equity round of Rs100 crore, with equity contributions coming from Kinara’s existing investors — Gaja Capital, GAWA Capital, Michael & Susan Dell Foundation (MSDF) and Patamar Capital,” it said in a release.
The funds will be used by Kinara Capital for expanding financial inclusion of MSMEs, across manufacturing, trading, and services sectors in India.
“Our partnership with IndusInd and DFC underscores our shared commitment to ease the credit hurdle faced by most small business entrepreneurs in India,” said Hardika Shah, founder and chief executive, Kinara Capital.
“MSMEs galvanize 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.” he added.
The fintech lender has disbursed Rs2,000 crore across 56,000 collateral-free small business loans.
The $10 million investment will be deployed over five years from IndusInd Bank’s Impact Investing division, with full backing from DFC.
In May 2019, Kinara Capital had secured a funding of Rs100 crore from private equity and impact investors — Gaja Capital, GAWA Capital, Michael & Susan Dell Foundation, and Patamar Capital.
Kinara Capital provides fast and flexible loans in the ₹2-25 lakh range without taking property collateral from small business entrepreneurs.
The article was first published on livemint.com