Kinara Capital Closes Around INR 200 Crore Fund Led by BII The fintech company plans to grow five times by 2025 and reach an AUM of INR 6,000 crore by democratizing access to formal financial inclusion with its myKinara App
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Kinara Capital, a fintech catering to Indian small business entrepreneurs, has closed a fresh equity round of around INR 200 crore led by British International Investment (BII), the UK government's development finance institution and impact investor.
Existing equity investors Nuveen and the ASN Microkredietfonds advised by Triple Jump also participated in this round. This equity investment will aim to propel Kinara Capital to grow five times by 2025 and reach an AUM of INR 6,000 crore by democratizing access to formal financial inclusion with its myKinara App, said a statement.
More than 300 MSME sub-sectors across manufacturing, trading and services sectors can digitally avail myKinara collateral-free business loans in the range of INR 1-30 lakhs, according to the company. Powered by the advanced use of AI/ML, the myKinara App can take small business entrepreneurs from loan decision-to-disbursement within 24-hours, it states. Kinara Capital plans to reach over 2,00,000 MSMEs across over 100 cities in India in the next three years.
Kinara Capital's other main equity investors include Gaja Capital, GAWA Capital, Michael & Susan Dell Foundation (MSDF), and Patamar Capital. Edelweiss Financial Services Limited acted as the exclusive advisor for the transaction.
"We are honored to onboard British International Investment (BII) as our latest equity investor. The combined expertise and capital infusion from BII, Nuveen and Triple Jump, will expand Kinara Capital's offerings to meet the rising demand of the MSME sector in India. This year, India's GDP growth has exceeded pre-pandemic levels signifying the resilience and growth prospects of small business entrepreneurs. With this support, we, at Kinara Capital, are further motivated to deliver on our mission of financial inclusion," Hardika Shah, founder and CEO, Kinara Capital.
"BII seeks to invest in companies that demonstrate strong development impact capacity and offer tech-enabled innovative solutions with high potential for scalability. Kinara Capital meets these criteria, and we are especially excited by its commitment to helping to expand financial inclusion to MSMEs, including increasing women's access to finance which in turn promotes women's entrepreneurship. I am pleased that our flexible capital will help boost productivity within India's MSME sector and facilitate entrepreneurial growth that will continue to transform the nation's economy," said Manav Bansal, managing director and head of India, British International Investment.
