Kinara Capital, which identifies as a socially responsible FinTech, has netted $10m from IndusInd Bank with a 100% guaranty from the U.S. International Development Finance Corporation (DFC).
This investment is part of a wider debt and equity round of INR 100 crores ($13.8m). The funds were supplied by Gaja Capital, GAWA Capital, Michael & Susan Dell Foundation and Patamar Capital.
With the fresh funds, the FinTech plans to expand its financial inclusion efforts across the manufacturing, trading and services sectors in India.
IndusInd Bank investment capital will be used for onward lending to small business entrepreneurs over the next five years.
The FinTech helps bring financial inclusion micro, small and medium sized enterprises (MSMEs) by offering collateral-free business loans.
It leverages AI and machine learning automated credit decisioning to lend without the use of credit scores or collateral.
Kinara Capital founder and CEO Hardika Shah said, “Our partnership with IndusInd and DFC underscores our shared commitment to ease the credit hurdle faced by most small business entrepreneurs in India. MSMEs galvanize 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.”
DFC managing director, social enterprise finance team, office of development Loren Rodwin said, credit “Commitment towards financial inclusion from Kinara Capital has made it possible for us to collaboratively help India’s small business entrepreneurs. We are motivated by the high potential and the high prospects of the diverse MSME sector in India and proud to partner with both IndusInd and Kinara Capital.”
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