Kinara Capital, a provider of collateral-free micro, small, and medium enterprise (MSME) loans, announced on Tuesday that it had closed a fresh Rs 380 crore equity round led by global investment manager Nuveen, with participation from Dutch microfinance fund ASN Microkredietfonds advised by impact-focused investment manager Triple Jump.
Kinara will expand its product and service offerings to fulfil India’s fast growing MSME credit demand, according to the business. Kinara Capital hopes to increase its revenue by 500 percent by 2025, with plans to grant Rs 10,000 crore in MSME company loans in the following three years.
In a statement, Kinara Capital founder and CEO Hardika Shah stated, “This new equity investment will empower us to expand quicker so that we can continue doing what we do best, which is to bring more small business owners into the fold of financial inclusion.”
Kinara Capital has issued approximately Rs 3,000 crore in collateral-free business loans to date, facilitating financial inclusion for the country’s neglected small company owners.
Rekha Unnithan, Nuveen’s managing director and co-head of Private Equity Impact, and Stephen Lee, Nuveen’s director of Private Equity Impact, will join Kinara Capital’s board of directors as a result of this equity deal.
“With its capacity to solve the pain points of MSMEs in India, Kinara has excelled the competition,” Unnithan remarked. “Kinara has honed its qualifying methods and turnaround time over the course of a decade of proprietary data.”
Nuveen is thrilled to be a full investor in Kinara Capital, and we look forward to working together on the next chapter of growth.”
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