Chennai, NFAPost: Dvara KGFS, a leading rural fintech, dedicated to fostering financial inclusion in deep rural villages across India, has raised $27 million in debt funds. This financial boost will play a crucial role in augmenting the company’s liquidity and accelerating its growth plans.
Dvara KGFS recently achieved a significant milestone of crossing the Rs 2000 crore mark in Assets Under Management (AUM). This milestone underscores the company’s strong performance and commitment to providing comprehensive financial services to underserved rural communities.
Dvara KGFS Managing Director and CEO LVLN Murty said Dvara KGFS, being a rural fintech, aims to provide holistic financial services to its customers, empowering them to enhance their financial well-being and lifetime value.
“The funds raised will enable us to expand our reach and impact, driving financial inclusion in rural India,” said Dvara KGFS Managing Director and CEO LVLN Murty.
The company secured $20 million in the form of external commercial borrowings (ECB) from NEDERLANDSE FINANCIERINGS-MAATSCHAPPIJ VOOR ONTWIKKELINGSLANDEN N.V (FMO), a Dutch entrepreneurial development bank committed to creating development impact and $7 million was raised from ENABLING QAPITAL Luxembourg SA, a leading impact investment advisory company dedicated to achieving financial and social returns.
This funding from large global impact investors is a testament to the impact that Dvara KGFS is creating in the financial inclusion space in India and will open more avenues for global partnerships.
Dvara KGFS Chief Financial Officer Shilpa Bhatter added that this fundraising not only diversifies the company’s lender profile but also strengthens its presence in the foreign debt market.
“It will unlock access to lower-cost debt and ensuring a sustainable growth path for Dvara KGFS,” said Dvara KGFS Chief Financial Officer Shilpa Bhatter.
The company aims to utilise the proceeds of the ECBs towards its onward lending programme, focusing on supporting microfinance and microbusiness loans for customers in regions with limited access to formal credit channels. This initiative further fortifies the company’s mission to extend comprehensive financial services to underserved rural communities.
Utilising an omnichannel approach, Dvara KGFS provides an array of loans and third-party products tailored to meet its customers’ diverse financial needs.
The company remains steadfast in its commitment to bridging the financial gap and empowering individuals and communities through financial services. With the success of this fundraise, Dvara KGFS is positioned to significantly enhance its impact on the lives of underserved individuals in rural India.
Dvara KGFS, a systematically important NBFC in the Dvara Group regulated by RBI, works with a mission to maximise the financial well-being of every individual and every enterprise by providing complete access to financial services in remote rural India. Dvara KGFS has a strong presence across 10 states with 378 branches with 10281 digital agents reaching more than 2.38 million customers.
