MSME lender Kinara raises $14.5 million from Gaja & Gawa Capital

Bangalore-based NBFC Kinara Capital, a lender for Micro, Small and Medium Enterprises (MSMEs) announced on Monday that it has raised $14.5 million in Series C funding from multiple investors.

The company raised the funding from new investors Gaja Capital and Gawa Capital with participation from existing investors Michael & Susan Dell Foundation and Patamar Capital.

This round has also provided exits to Shriram City Union Finance Ltd and investors of IIX’s Impact Partners platform.

Kinara Capital's current lending portfolio is  $40.23 million across more than 9000 customers.

The fresh funding will be used to expand the product portfolio in existing and new geographies in India and increase investment in technology to improve efficiency in field operations.

“This new investment will help us deepen our reach in existing geographies and enhance our technology solutions to improve our efficiency. Our aim is to extend our support to more than 50,000 entrepreneurs across 100 cities in India by the end of 2019,” said Hardika Shah, founder, and CEO of Kinara Capital.

The company funds a wide range of MSMEs with a focus on manufacturing businesses in sectors such as auto parts, machine components, electrical components and much more.

Agustin Vitorica, Co-founder, and Co-CEO of GAWA Capital, who has joined the board said, “At GAWA, we strive to identify leaders who can compel a transformational shift in an industry. Hardika Shah of Kinara Capital has proven to do just that with successful MSME lending initiatives. We see a tremendous opportunity in contributing to filling the MSME credit gap in India.”

Kinara Capital said that its typical customer is a first-generation entrepreneur with five years of work experience and an average business turnover of rupees 1-20 lakh per month.

The company said that it is committed to providing innovating financial solutions to the MSME segment in India.