MSME-focused social enterprise Kinara Capital secures investment from Michael and Susan Dell Foundation

Kinara Capital, a Bangalore based social enterprise committed to bridging the debt gap in India by financing micro, small, and medium enterprises (MSMEs), announced it has received an equity investment from the Michael and Susan Dell Foundation.

This investment will support Kinara's efforts to expand their operations in India and adds a new facet to the Michael and Susan Dell Foundation's existing catalytic portfolio of initiatives that helps provide financial services to urban poor families in India.

The Dell family foundation will hold a minority equity stake in the company, and Satyam Darmora, Portfolio Lead, Family Economic Stability will join the Board of Directors. The Family Economic Stability portfolio of Michael and Susan Dell Foundation includes more than 25 microfinance and skill training institutions.

Kinara Capital is addressing the INR 1 Trillion* debt gap between microfinance and commercial capital by providing collateral free loans in the range of Rs.50,000 to Rs.10,00,000 for asset finance and working capital to MSMEs. Kinara has taken an innovative approach to managing risk through strategies such as psychometric testing to understand the MSMEs' "willingness to pay," a cash flow driven risk-assessment, and funding across the supply-chain to create checks-and-balances. Kinara also provides a receivables financing product that is typically inaccessible for micro and small businesses. Kinara aims to create 100,000 net new jobs and impact 1 million lives in five years in India.

Hardika Shah, CEO and Founder of Kinara Capital said, "We at Kinara Capital are proud to bring the Michael and Susan Dell Foundation as an investor and to have Satyam Darmora join our Board. Kinara recognizes that providing the right financing solutions to MSMEs has the potential for significant economic and social impact. We are continuously innovating on how to meet the financial needs of these entrepreneurs who are often excluded by the traditional banking system. This recognition and support from the foundation will surge Kinara's efforts to expand its operations to new geographies and deploy field agent technology to increase operational efficiency and improve customer service.