Kinara Capital, a fintech lender for Indian small businesses announced the close of a fresh equity round of around INR 200 crore led by British International Investment (BII). Existing investors in Nuveen shares and ASN Microkredietfonds, advised by Triple Jump, also participated in this round.
According to the company, this equity investment will help Kinara Capital drive five-fold growth and achieve AUM (assets under management) of Rs 6,000 crore by 2025 by democratizing access to formal financial inclusion through the myKinara app.
Kinara Capital plans to reach over 200,000 SMEs in over 100 cities in India over the next three years. The social impact of this growth is expected to support more than one million jobs in local economies and generate more than Rs 3,000 crore in incremental income for small businesses.
Alex Ellis, British High Commissioner-India, said, “Women-led fintech company Kinara is championing women’s empowerment and providing easier access to capital for small entrepreneurs across India. The British Government is proud to support the company through BII’s investment.”
Hardika Shah, Founder and CEO of Kinara Capital, said, “We are honoured to include British International Investment (BII) as our latest equity investor. The combined expertise and capital infusion from BII, Nuveen and Triple Jump will expand Kinara Capital’s offering to meet the growing demand of the SME sector in India.”
Manav Bansal, Managing Director and Director of British International Investment-India, said, “BII seeks to invest in companies that demonstrate a strong capacity for development impact and offer technology-based innovative solutions with high potential for scalability.”
Kinara Capital’s other major equity investors include Gaja Capital, GAWA Capital, Michael and Susan Dell Foundation (MSDF) and Patamar Capital. Edelweiss Financial Services Limited acted as the exclusive advisor for the transaction.
Kinara Capital meets these criteria and we are particularly excited about its commitment to help expand financial inclusion in SMEs, including increasing women’s access to finance, which in turn supports women’s entrepreneurship.