Bengaluru-based small business lender Kinara Capital on Monday announced securing $10 million (Rs 74 crore) from IndusInd Bank with a 100 percent guaranty from the US International Development Finance Corporation (DFC).
This is part of a debt and equity round of Rs 100 crore, with equity contribution coming from Kinara’s existing investors Gaja Capital, GAWA Capital, Michael & Susan Dell Foundation and Patamar Capital, the fintech non-banking financial company said in a statement.
"This investment will be utilised by Kinara Capital towards the expansion of MSME financial inclusion across manufacturing, trading, and services sectors in India,” it said.
Kinara Capital has disbursed Rs 2,000 crore across56,000-plus collateral-free small business loans, the 56,000-plus collateral-free small business loans, the statement added.
The $10 million investment for onward lending to small business entrepreneurs will be deployed over five years from IndusInd Banks impact investing division with full backing from DFC, part of the US federal government.
"This three-way partnership between Kinara Capital, IndusInd Bank and DFC unites the organisations shared goals to promote entrepreneurship, financial inclusion and job to promote entrepreneurship, financial inclusion and job creation,” it was stated.
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