Summary:

  • Kinara Capital secured a substantial $24.4 Mn in debt funding through strategic partnerships with Impact Investment Exchange (IIX) and BlueOrchard Microfinance Fund based in Singapore.

  • Kinara Capital has emerged as a prominent player in the digital lending landscape, specializing in providing business loans to Micro, Small, and Medium Enterprises (MSMEs)

  • Overall, Kinara Capital has raised approximately $153 Mn in funding, excluding the latest debt funding round

Kinara Capital, a pioneering Bengaluru-based fintech startup established in 2011 by Hardika Shah, has made significant strides in empowering entrepreneurs, particularly women, through its innovative financial solutions. Earlier this year, the company unveiled a landmark INR 500 Cr fund dedicated exclusively to supporting women entrepreneurs, a testament to its commitment to fostering diversity and inclusion in the entrepreneurial ecosystem.

Kinara Capital has emerged as a prominent player in the digital lending landscape, specializing in providing business loans to Micro, Small, and Medium Enterprises (MSMEs). Leveraging its user-friendly platform, the marinara app, the company has facilitated seamless access to financial resources, empowering entrepreneurs to realize their business aspirations.

In a recent development, Kinara Capital secured a substantial $24.4 Mn in debt funding through strategic partnerships with IImpact Investment Exchange (IIX) and BlueOrchard Microfinance Fund based in Singapore. According to the startup’s regulatory filings, this infusion of capital underscores investor confidence in Kinara Capital’s mission and operational capabilities.

Breaking down the funding details, Kinara Capital raised $14.4 Mn (equivalent to approximately INR 120.1 Cr) by issuing debentures to IIX’s Women’s Livelihood Bond 6 (WLB Asset VI) for a duration of four years, culminating in March. This strategic alliance reflects Kinara Capital’s commitment to supporting initiatives aimed at economic empowerment, particularly for women.

Subsequently, in April, the company received an additional $10 Mn through the issuance of bonds to BlueOrchard Microfinance Fund, extending over a four-year term. This underscores Kinara Capital’s adeptness in tapping into diverse funding sources to fuel its growth trajectory. Moreover, the startup’s potential for further debt funding shortly signifies its expanding financial footprint and ambitious growth plans.

Notably, the startup’s board recently passed a resolution authorizing the issuance of debentures and bonds worth up to INR 1,300 Cr, signalling its proactive approach to capital procurement. This strategic foresight underscores Kinara Capital’s agility in capitalizing on emerging opportunities in the dynamic financial landscape.

The latest financial milestones coincide with the company’s ongoing commitment to its ‘HerVikas’ program, now in its fifth year. Through this initiative, Kinara Capital has disbursed loans totalling INR 700 Cr to date, empowering women entrepreneurs with unsecured business loans, working capital, and other essential resources. The ‘HerVikas program epitomizes Kinara Capital’s holistic approach to fostering economic empowerment and gender equality within the entrepreneurial sphere.

In addition to its social impact initiatives, Kinara Capital has achieved significant milestones in terms of business growth. With over INR 4,000, Cr disbursed loans to over 50,000 customers, the company has solidified its position as a trusted financial partner for entrepreneurs nationwide. Through a network of over 130 branches, Kinara Capital continues expanding its reach and impact across diverse market segments.

In 2022, Kinara Capital raised $24 Mn in an equity funding round led by the UK-based development finance institution British International Investment, with participation from existing investors Nuveen and Triple Jump. This underscores investor confidence in the company’s vision and strategic direction. Overall, Kinara Capital has raised approximately $153 Mn in funding, excluding the latest debt funding round, further bolstering its position in the competitive fintech landscape.

Moreover, recent developments in the financial sector, such as IIX’s investment in agriculture financing startup Sammunati and BlueOrchard Microfinance Fund’s support for AVIOM Housing Finance Corporation, underscore the growing investor interest in inclusive financial solutions and sustainable development initiatives.

In summary, Kinara Capital’s recent financial achievements and unwavering commitment to social impact position it as a trailblazer in the fintech industry. By harnessing the power of technology and fostering strategic partnerships, Kinara Capital continues to drive positive change and empower entrepreneurs, paving the way for a more inclusive and prosperous future.