Kinara Capital, which offers unsecured business loans for MSMEs, on Friday said it has raised Rs 200 crore led by British International Investment (BII), the UK’s development finance institution and impact investor.
Existing equity investors Nuveen and the ASN Microkredietfonds advised by Triple Jump also participated in the funding round. With this funding, Kinara Capital aims to grow 5 times by 2025 and reach an asset under management (AUM) of Rs 6,000 crore.
“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 across manufacturing, trading and services sectors can digitally avail of ‘myKinara’ collateral-free business loans in the range of Rs 1-30 lakh.
Kinara Capital plans to reach over 2,00,000 MSMEs across more than 100 cities in the next three years. The social impact of this growth is expected to support over 1 million jobs in local economies and generate over Rs 3,000 crore in incremental income for small business entrepreneurs, said the company.
“Women-led fintech company Kinara champions female empowerment and provides easier access to capital for small entrepreneurs across India. The British Government is proud to support the company through BII’s investment,” said Alex Ellis, British High Commissioner to India.