Dvara KGFS raises €3 mn via equity, $5 mn through bonds
SIDT is part of the German Sparkassen Group, considered the largest financial group in Europe
CHENNAI: Dvara Kshetriya Gramin Financial Services (Dvara KGFS), a major NBFC working in India’s financial inclusion space, has successfully raised Equity of 3 mn Euro from Sparkassen International Development Trust GmbH (SIDT) and $5 mn through issuance of Subordinated Bonds to FMO Entrepreneurial Development Bank.
This infusion will further strengthen the capital base of the company thus enabling it to augment its growth plans and expand its outreach. The company is strategically pivoting towards enhancing wholistic financial access tomiicro entrepreneurs in the inclusion space.
SIDT is part of the German Sparkassen Group, considered the largest financial group in Europe. SIDT launches its first equity participation in the Indian financial inclusion space with this investment in Dvara KGFS, as per a rdlease.
FMO Entrepreneurial development bank is a public-private development bank supervised by the Dutch Central Bank (DNB). FMO’s first investment in Dvara KGFS came in FY24.
LVLN Murty, MD-CEO, Dvara KGFS, said, "At a time when the inclusion space in India is witnessing unprecedented challenges, this fund raise is a testimony of the resilience, agility and scalability of the Dvara KGFS business model and lending infrastructure. With the strong backing of our highly reputed investors and lenders, we are confident in our ability to deepen our impact in providing finance to the underserved and reinforce our mission to enable financial well-being at the last mile by opening 50 branches in this financial year that would originate enterprise loans exclusively, thereby taking the total branch strength to 477 by the end of this fiscal. The company is investing in digital transformation usi
