Kinara Capital, a provider of unsecured business loans for MSMEs, announced that British International Investment (BII), a development finance institution and impact investor based in the UK, had helped them raise Rs 200 crore.
The funding round included participation from the ASN Microkredietfonds advised by Triple Jump as well as current equity holders Nuveen.
With this capital, Kinara Capital hopes to expand five times by 2025 and accumulate Rs 6,000 crore in assets under management (AUM).
"The combined expertise and capital infusion from BII, Nuveen and Triple Jump, will expand Kinara Capital's offerings to meet the rising demand of the MSME sector in India. With this support, we, at Kinara Capital, are further motivated to deliver on our mission of financial inclusion," said Hardika Shah, Founder and CEO of Kinara Capital.
More than 300 MSME sub-sectors in the manufacturing, trading, and service sectors can electronically apply for "myKinara" business loans with no collateral ranging from Rs 1 to Rs 30 lakh.
In the next three years, Kinara Capital wants to reach over 2,000 000 MSMEs in more than 100 locations.
According to the corporation, the social impact of this expansion is anticipated to support over 1 million employment in local economies and produce over Rs 3,000 crore in additional income for small business owners.
"Kinara, an Indian fintech company run by women, supports female empowerment and makes it simpler for small business owners to acquire money. Through BII's investment, the British Government is pleased to support the business "Alex Ellis, the British ambassador to India, remarked.
Gaja Capital, GAWA Capital, Michael & Susan Dell Foundation (MSDF), and Patamar Capital are among the other major equity investors in Kinara Capital.
"We are happy to participate in this round of investment for Kinara Capital which we consider to be at the forefront of driving financial inclusion with its digital processes combined with a personalised approach," said Rekha Unnithan, Managing Director and Co-Head of Private Impact Investing, Nuveen.
