Summary:

  • Dvara Kshetriya Gramin Financial Services (Dvara KGFS) is a Non-Banking Financial Company (NBFC) operating in the remote rural areas of India

  • The round is led by BlueOrchard Microfinance Fund

  • Dvara KGFS is led by LVLN Murty, whose leadership has been pivotal in steering the company’s vision and operations

Dvara Kshetriya Gramin Financial Services (Dvara KGFS), a Non-Banking Financial Company (NBFC) operating in the remote rural areas of India, has successfully raised $10 million in debt financing from BlueOrchard Microfinance Fund. This infusion of funds will be directed towards expanding the company’s operations and bolstering its mission to empower underserved communities across the country.

This latest funding round follows a previous significant capital raise by Dvara KGFS. In March this year, the company secured $14.4 million through listed non-convertible debentures (NCDs) from Impact Investment Exchange (IIX). These back-to-back fundraises underscore the confidence investors have in Dvara KGFS’s business model and its impact on rural financial inclusion.

Dvara KGFS is led by LVLN Murty, whose leadership has been pivotal in steering the company’s vision and operations. The company’s primary focus is on enhancing the well-being of individuals and supporting nano and micro-businesses in India’s rural heartlands. By leveraging an omnichannel approach, Dvara KGFS provides a comprehensive suite of financial services, including various types of loans and third-party products, tailored to meet the diverse needs of its clientele.

With a robust presence across more than 400 branches in 10 states, including Tamil Nadu, Uttarakhand, Uttar Pradesh, Chhattisgarh, Jharkhand, and Bihar, Dvara KGFS has established a significant footprint in rural India. This extensive network allows the company to reach deeply into remote areas, offering financial services that are often inaccessible to these communities.

In addition to its geographic expansion, Dvara KGFS has also achieved a remarkable milestone in its financial growth. In February this year, the company surpassed Rs 2,000 crore in Assets Under Management (AUM). This achievement reflects the firm’s rapid growth and its ability to scale its operations effectively while maintaining a strong focus on serving the financial needs of rural populations.

Dvara KGFS’s strategic approach involves understanding the unique challenges faced by rural communities and developing products that address those specific needs. The company’s loan offerings are designed to support various aspects of rural life, from agricultural activities to small business operations. By providing these financial services, Dvara KGFS helps to stimulate economic activity and improve the livelihoods of its customers.

The recent debt raise from BlueOrchard Microfinance Fund will enable Dvara KGFS to further enhance its service delivery and outreach. With additional capital, the company plans to deepen its impact in existing regions and explore new areas where financial services are in dire need. This expansion will not only help in scaling up operations but also in creating more job opportunities and fostering economic development in these underserved regions.

Furthermore, the funds will support the integration of technology in Dvara KGFS’s operations. Embracing digital solutions is key to improving efficiency and customer experience. By investing in technology, Dvara KGFS aims to streamline its processes, reduce operational costs, and offer more accessible and user-friendly services to its customers.

Dvara KGFS’s journey is a testament to the transformative power of financial inclusion. The company’s efforts are geared towards creating a sustainable and inclusive financial ecosystem that empowers rural communities. As it continues to grow and expand, Dvara KGFS remains committed to its mission of driving positive change and improving the financial well-being of India’s rural population.