Dvara KGFS acquires Varam Capital

: Dvara KGFS, formerly IFMR Rural Channels and Services, a financial service institution, Tuesday said it has acquired Varam Capital, a non-banking micro finance institution.

Following the acquisition, customers of Varam Capital and its digital capabilities would be merged with KGFS to enhance the ability of combined business to grow profitably and serve remote rural customers, a press release said here.

Dvara KGFS has presence in Tamil Nadu, Uttarakhand and Odisha and has over eight lakh customers, the release said.

"We aim at growing geographically and continue to build a strong digital platform and data science architecture that help us understand our remote rural customers better," Dvara Trust official Samir Shah said in the release.

"The key priority and focus is to execute on the growth strategy of Dvara KGFS. With the additional customers, talent from Varam, we feel this (acquisition) enhances our ability to execute with greater confidence," he said.

Varam Capital has a robust digital and data science capability that aligns well with KGFS strategy and commitment to using technology and data science.

It has a significant presence in Tamil Nadu, Chhattisgarh with 28 branches, presence in 12 districts and has more than 1.28 lakh customers.

"We see Dvara KGFS as an institution focused on the wealth management approach, multi-product offering and customer centricity. This combined with Varam's fintech approach will pave way for new growth opportunities," CEO of Varam Capital Joby was quoted as saying.

"As part of our growth strategy, we will stay focused on our unique USP of remaining remote rural (areas) and grow in other states," he said.

The company was also looking at further expansion in Odisha and Jharkhand.

With the take-over, Joby was appointed as CEO and LVLN Murty as deputy CEO by the board of Dvara KGFS.