Kinara raises 100 crore from Gaja Cap, others

  • Kinara last raised $5 million in debt from Swiss impact investor ResponsAbility Investments AG in July last year, prior to which it raised 96 crore led by Gaja Capital
  • The lender claims to have disbursed 1,160 crore of loans so far, impacting over half a million people

Mumbai: Small business lender Kinara Capital said on Thursday it has raised 100 crore from private equity funds and impact investors, which will help it increase its investment in technology to improve customer experience and assess credit decisions at a faster rate.

The round was led by its existing investors, including mid-market private equity firm Gaja Capital, Spanish investment firm GAWA Capital, Michael and Susan Dell Foundation and Patamar Capital, an impact investor based in San Francisco.

Last July, Kinara raised $5 million in debt from Swiss impact investor ResponsAbility Investments AG. It had earlier raised 96 crore led by Gaja Capital.

The lender claims to have disbursed 1,160 crore in loans so far to over half a million people.

Hardika Shah, founder and chief executive, Kinara Capital, said: “We are honoured with the vote of confidence from our investors as we aim to reach new milestones by investing in our people and technology. Impact-focused sustainable growth is at the heart of all that we do to create access to capital for small business entrepreneurs."

Kinara Capital provides loans between 2 lakh and 25 lakh, without taking property collateral from small business entrepreneurs. Women were hired in 22% of the jobs created by small businesses funded by Kinara Capital, and about 28% of all jobs went to first-time earners, said a company statement.

Kinara Capital has built a fully digital platform that eliminates paperwork and saves time for both customers and employees to fast track the credit decision process, and it claims to disburse funds within 5-7 days of receiving the loan application. The company will now expand investment in services such as autopay and auto-disbursement. At the backend, the company will further develop its proprietary machine-learning lending algorithms to fast track financial inclusion.

It also plans to add 20 branches in high-growth locations in Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu and Telangana. Kinara Capital currently employs 1,000 people and plans to hire about 300 more this year.