Kinara Capital raises Rs 100 crore from private equity, impact investors

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Mumbai | Published: May 10, 2019 1:56:56 AM

Kinara Capital, a non-banking finance company (NBFC) that lends to small businesses, has raised Rs 100 crore from private equity and impact investors including Gaja Capital, GAWA Capital, Michael & Susan Dell Foundation and Patamar Capital.

The NBFC is also investing in technology and will now expand investment in services that refine the customer experience with features such as auto-pay and auto-disbursement.

Kinara Capital, a non-banking finance company (NBFC) that lends to small businesses, has raised Rs 100 crore from private equity and impact investors including Gaja Capital, GAWA Capital, Michael & Susan Dell Foundation and Patamar Capital.

Kinara Capital provides loans in the range of Rs 2-25 lakh to small business entrepreneurs. Headquartered in Bengaluru, the firm has 90 branches across Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu, Telangana and Puducherry. The firm claims that funds are disbursed within 5-7 days of receiving the loan application.

Kinara Capital is looking to accelerate its growth in new and existing markets and increase its investment in technology to improve customer experience and assess credit decisions at a faster rate. The firm has disbursed Rs 1,160 crore across 33,785+ loans to date.

In a telephonic conversation with FE, Hardika Shah, founder and CEO of Kinara Capital, claims the firm has witnessed close to 100% growth in fiscal year-ended 2019, both in terms of its revenues and the profit.

“For FY19, we had revenues of close to Rs 140 crore with a net profit of about Rs 8 crore. This is our fourth year that has been profitable and we have doubled our topline and bottomline from FY18 to FY19,” she said.

The NBFC is also investing in technology and will now expand investment in services that refine the customer experience with features such as auto-pay and auto-disbursement. On the back-end, the company will further develop its proprietary machine learning lending algorithms to fast track financial inclusion for thousands of small business entrepreneurs.

With the fund raise, the NBFC is now planning to add 20 branches in high-growth locations in Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu and Telangana. Kinara Capital currently has an employee base of 1,000 and plans to fill about 300 more roles this year.

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