kinara capital: Kinara Capital raises Rs 380 crores in funding led by investment manager Nuveen

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Chennai: Collateral-free micro, small & medium enterprise (MSME) loans provider Kinara Capital on Tuesday said it closed a fresh equity round of Rs 380 crore led by global investment manager Nuveen with participation from Dutch microfinance fund ASN Microkredietfonds advised by impact-focused investment manager Triple Jump.

The company said the fund infusion will lead to Kinara’s expansion of products and services to meet the rapidly increasing MSME credit demand in India. Kinara Capital aims to grow by 500% by 2025 with plans to disburse Rs 10,000 crore of MSME business loans in the next three years.

“This fresh equity round will energize us to scale faster so that we can continue doing what we do best, which is to bring more small business entrepreneurs into the fold of financial inclusion,” Hardika Shah, founder and chief executive officer, Kinara Capital, said in a statement.

To date, Kinara Capital has disbursed Rs 3,000 crore across over 75,000 collateral-free business loans enabling financial inclusion of the underserved small business entrepreneurs in the country.

With this equity round, Kinara Capital will have Nuveen’s managing director & co-head of Private Equity Impact, Rekha Unnithan, and Nuveen’s director of Private Equity Impact, Stephen Lee will join their board of directors.

“Kinara has outclassed others with its ability to address the pain points of MSMEs in India,” Unnithan said. “With a decade worth of proprietary data, Kinara has perfected its qualification processes and turnaround time. We at Nuveen are proud to invest fully in Kinara Capital, and together, we will turn to the next chapter of growth.”

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Kinara offers both a fully digital process with its myKinara app and doorstep customer service with over 110 branches serving small business entrepreneurs across more than 90 cities in India. The company’s vernacular-friendly myKinara app can take MSME applicants from loan decision-to-disbursement within 24-hours. More than 300 sub-sectors across manufacturing, trading, and services MSME sectors can avail Kinara’s collateral-free business loans in the range of Rs 1-30 lakhs.

“Impact is core to Kinara’s business and the company has never wavered from its mission of financial inclusion. We are impressed by Kinara’s genuine commitment towards gender parity both within its organization by leading with a women-majority management team and with its HerVikas program for women entrepreneurs,” Orsolya Farkas, equity manager, Triple Jump, said.

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