Kinara Capital solicits funding of Rs 380 rupees led by Nuveen’s investment manager; for disbursement of Rs 2,000 MSME credits in financial year 23
Loans and finances to MSME: Kinara Capital, MSME’s free loan provider, announced on Tuesday that it raised 380 crore rupees (nearly $ 50 million) in a recent round of action led by new investors – Chicago-based global investment manager Nuveen that manages over $ 1.3 million in assets. trillion dollars (AUM) and the Dutch microfinance fund ASN Microkredietfonds, advised by the influence-focused investment manager Triple Jump. The company makes a loan of Rs 1 lakh to Rs 30 lakh under a 24 hour payout window with an average ticket size of Rs 10 lakh. Since its launch in 2011, it has disbursed approximately 70,000 crore rupees for 40,000-45,000 MSME loans, out of almost Rs 1,300 AUM crore in March 2022, an increase of approximately 45 percent compared to the year before. .
“This is capital for development, which should be spent on offering new products, expanding the branch network, leveraging debt, thanks to which we have a large scope for the next 18 months. We can see that customers are looking for more flexible, short-term on-demand and embedded products. That’s why we’re working on new technology to bring more credit to our small business customers. As for the branch network, we would expand from the current 90 cities to 125 by the end of this quarter, ”said Financial Express Online Hardika Shah, Founder and CEO of Kinara Capital.
The new round brings the total investment raised by the company, including equity and debt, to around Rs 990 crore (nearly $ 130 million). The company raised approximately 607 crore rupees ($ 79.5 million) by last October, when it secured funding of 70 crore rupees from the German microfinance fund Visions GmbH (IIV) with the support of agents of influence (AFI) from Crunchbase.
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Kinara has a mother tongue friendly myKinara digital app as well as direct customer support to provide access to MSME credits. Borrowers from over 300 subsectors in manufacturing, trade and services can avail online loans through the platform. “The implementation of a digital automated decision-making solution helped us withdraw loans faster and within 24 hours. We intend to double the AUM this fiscal year to around Rs 2500-2600 crore as customers exit Covid, and at entry level there is definitely a huge hype in terms of growth prospects based on consumer demand, ”Shah added. In terms of payouts, the company is expecting a 2.5-3X increase this year to around Rs 2,000 crore and 10,000 crore over the next three years.
The Net Non-Working Assets (NPA) ratio at Kinara is around 3 percent, while “we saw that with our last mile distribution and collection infrastructure we were able to achieve the same collection efficiency as before Covid,” said Shah.
With the new round, Nuveen Managing Director and Co-Head of Private Equity Impact, Rekha Unnithan, and Nuveen’s Head of Private Equity Impact, Stephen Lee will join Kinara’s board of directors. As shareholders, Nuveen and Triple Jump will support the continued development of Kinary and the continued development of their best-in-class ESG and impact management system, the company said.
“By adopting a digitization-oriented approach without compromising customer service, Kinara has outclassed others with its ability to deal with the ills of MSMEs in India. With proprietary data for a decade, Kinara has improved its qualification processes and lead times, ”Unnithan said in a statement.