Kinara Capital has Raised $10 Million from IndusInd Bank

Kinara Capital, the small business lender has raised about $10 million fund from the Induslnd Bank. The small business lender Kinara would be using this fund to expand the MSME financial inclusion across manufacturing, trading and services sectors in India.

Kinara Capital has announced that it has raised $10 million (Rs 74 crores) from IndusInd Bank with a 100 percent guarantee from the US International Development Finance Corporation (DFC).

Alongide the funding being raised from Induslnd, Kinara’s existing investors such as Gaja Capital, Michael & Susan Dell Foundation (MSDF), GAWA Capital, and Patamar Capital has also participated in this round, which is a part of a debt and equity round of Rs 100 crore.

According to a company’s statement, this investment would be used by Kinara Capital on expanding the MSME of financial inclusion across manufacturing, trading, and services sectors in India.

The $10 million investment for onward lending to small business entrepreneurs will be deployed over five years from IndusInd Bank’s Impact Investing division with backing from DFC, part of the US federal government and an emerging markets impact leader. This three-way partnership between Kinara Capital, IndusInd Bank, and DFC unites the organisations’ shared goals to promote entrepreneurship, financial inclusion, and job creation.

Commenting on the partnership with IndusInd and DFC, Hardika Shah, Founder and CEO, Kinara Capital states, “Our partnership with IndusInd and DFC underscores our shared commitment to ease the credit hurdle faced by most small business entrepreneurs in India.”

She further adds, “MSMEs galvanise India’s economy with income generation and job creation, and there is an ever-increasing demand for financing for businesses to rebuild and grow this year. This investment from IndusInd Bank and DFC will accelerate financial inclusion of small businesses, thereby invigorating local economies.”