Kinara Capital, a fintech company, announced the raising of ₹200 crore in fresh equity led by British International Investment (BII), the UK’s development finance institution and impact investor.
The round also saw participation from the existing equity investors — Nuveen and the ASN Microkredietfonds advised by Triple Jump.
The equity investment will propel it to grow 5x by 2025 and reach an asset under management (AUM) of ₹6,000 crore by democratising access to formal financial inclusion with its app, said the company that focuses on small business entrepreneurs.
Hardika Shah, Founder and CEO, Kinara Capital said, “The combined expertise and capital infusion from BII, Nuveen, and Triple Jump will expand our 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 are further motivated to deliver on our mission of financial inclusion.”
Additionally, more than 300 micro, small and medium enterprises (MSME) in sub-sectors such as manufacturing, trading, and service sectors can digitally avail of collateral-free business loans in the range of ₹1-30 lakh, said the company.
Expansion plans
Kinara Capital plans to reach over 2,00,000 MSMEs in more than 100 cities in the next three years. The social impact of this growth is expected to support over one million jobs in local economies and generate over ₹3,000 crore in incremental income for small business entrepreneurs, it claimed.
Alex Ellis, British High Commissioner to India said, “Women-led fintech company Kinara champions female empowerment and provides easier access to capital for small entrepreneurs across India. The UK remains committed to solving the biggest global development challenges by supporting sustainable and inclusive economic outcomes for all.”