CHENNAI: Dvara KGFS, a rural fintech enterprise, dedicated to fostering financial inclusion in villages, 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. The company recently achieved a milestone, crossing the Rs 2,000 crore mark in Assets Under Management. It underscores the company’s strong performance and commitment to providing comprehensive financial services to underserved rural communities.
LVLN Murty, MD-CEO, Dvara KGFS, said, “The funds raised will enable us to expand our reach and impact, driving financial inclusion in rural India.” The company secured $20 million in the form of External Commercial Borrowings (ECB) from a Dutch entrepreneurial development bank committed to creating development impact; also $7 million was raised from Enabling Qapital Luxembourg SA, an impact investment advisory company dedicated to achieving financial and social returns.
Shilpa Bhatter, CFO, added, “This fundraising diversifies our lender profile, strengthens our presence in the foreign debt market, unlocking access to lower-cost debt, ensuring a sustainable growth path.”
The firm aims to utilize proceeds of ECBs towards its onward lending program, focusing on supporting microbusiness loans for customers in regions with limited access to formal credit channels. This initiative fortifies the mission to extend comprehensive financial services to underserved rural communities.