Small businesses-focused non-banking lender Kinara Capital has secured USD 10 million from IndusInd Bank with 100 per cent guarantee from the US International Development Finance Corporation.
The Bengaluru-based NBFC, which has so far disbursed Rs 2,000 crore collateral-free small business loans to over to over 56,000 customers since inception, said it will use the money for on-lending to small businesses over the next five years.
It said the latest debt funding is part of a debt and equity round of Rs 100 crore, with equity contribution coming from existing investors -- Gaja Capital, Gawa Capital, Michael and Susan Dell Foundation and Patamar Capital.
Kinara lends to MSMEs across manufacturing, trading and services sectors, Hardika Shah, founder and chief executive said.
The debt funding comes from IndusInd Bank's impact investing division, while the DFC is part of the US federal government does impact funding.
Roopa Satish of IndusInd Bank said the DFC guarantee eliminates forex fluctuation risks from the balance sheet of Kinara and it has become an important tool to mobilise debt funding for impact space companies.
Loren Rodwin of DFC said Kinara's commitment towards financial inclusion has made it possible for us to collaborate with India's small businesses.
Kinara provides collateral-free business loans in the range of Rs 1-30 lakh to MSMEs 90 per cent of whom are new to credit. The NBFC claims that its financial assistance has helped these companies gain and incremental income of over Rs 700 crore and over 2,50,000 new jobs.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Feb 22 2021 | 2:02 PM IST