Fintech soonicorn Kinara Capital looks to raise $150-$200 million

Kinara Capital will diversify its product offerings and is looking for growth capital to expand financial inclusion, said Founder and CEO Hardika Shah

Bengaluru-headquartered fintech soonicorn Kinara Capital, which focuses on financial inclusion of small business entrepreneurs, is on the prowl for funds again and is looking to mop up around $150 million to $200 million, multiple industry sources in the know told Moneycontrol.

"Yes, Kinara is back in fund raise mode. They are in discussions with investment bank Edelweiss Financial Services as advisors. Edelweiss had helped the firm in its last round as well," said one of the persons above.

Two other persons confirmed the proposed transaction, and one of them added that Kinara Capital needed fresh growth capital.

All the three persons above spoke to Moneycontrol on the condition of anonymity.

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In response to an email query from Moneycontrol, Hardika Shah, Founder and CEO, Kinara Capital said, "For over a decade, Kinara Capital has demonstrated scale and profitability as a leading MSME lender, especially by providing access to collateral-free credit. As we continue to grow, we will diversify our product offerings to meet the vast credit demand in the MSME sector. For this, we are looking for growth capital to expand financial inclusion to the much deserving, but the much underserved, MSME sector of India.”

Moneycontrol has sent an email query but could not elicit an immediate response from Edelweiss Financial Services. This article will be updated once we hear from the firm.

Kinara: Funding, founder, stats & more

Kinara has raised over $500 million in capital (equity and debt), from India-based and global investors. Currently, its major equity investors include Gaja Capital, Michael & Susan Dell Foundation (MSDF), Patamar Capital and GAWA Capital. Last year, Kinara raised $52 million in equity funding from Nuveen, Triple Jump, and British International Investment (BII).

Launched in 2011, the firm is headquartered in Bengaluru and has 125 branches servicing MSMEs in 100+ cities across six states in India with an employee strength of 1,600. It has 40 plus lending partners and specializes in collateral-free credit for the sub-INR 10 lakhs market space.

Kinara has reported profitability for eight years and with AUM of Rs 2,600 crore in May 2023, it is planning on reaching AUM of Rs 6,000 crore in the next couple of years.

As part of the diversification of its product portfolio, the fintech is doubling its commitment to women entrepreneurs with HerVikas program and introducing Green Finance products.

Prior to launching Kinara Capital, Hardika spent two decades as a management consultant with Accenture, driving billion-dollar client projects across multiple industries around the globe. She has a decade of involvement in the social entrepreneurship field as a mentor with Santa Clara University, Stanford University, Accenture Development Partnerships, the Acumen Fund and Columbia Business School.

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