Bengaluru: Bengaluru-based fintech lender Kinara Capital has secured $10 million (Rs 74 crore) debt funding from IndusInd Bank with a full guarantee from the US International Development Finance Corporation (DFC).
This is a part of a debt and equity round worth Rs 100 crore ($13.8 million), with equity contribution from existing investors – Gaja Capital, GAWA Capital, Michael & Susan Dell Foundation, and Patamar Capital.
This investment will be utilized by Kinara towards the expansion of MSME financial inclusion across manufacturing, trading, and services sectors in India, the non-bank lender said in a statement.
“This special $10 million investment for onward lending to small business entrepreneurs will be deployed over five years from IndusInd Bank’s Impact Investing division with full backing from DFC,” the statement added.
Kinara, founded by Hardika Shah in 2011, is a non-banking financial company (NBFC) which is operated by Visage Holdings and Finance Pvt. Ltd.
It provides collateral-free business loans in the range of Rs 1-30 lakhs, without property collateral, to a range of MSMEs from small-scale manufacturing industries to general retail shops to service businesses, filling the gap between microfinance and commercial capital in India.