Kinara Capital Secures $24.4 Million in Debt Funding to Boost Support for Women Entrepreneurs

• ByStartupStory     |    May 4, 2024

Bengaluru-based digital lending startup Kinara Capital has secured $24.4 million in debt funding, with contributions from the Singapore-based Impact Investment Exchange (IIX) and BlueOrchard Microfinance Fund. This development was first reported by INC42.

According to regulatory filings, in March, Kinara Capital raised $14.4 million (INR 120.1 Cr) by allotting debentures to IIX’s Women’s Livelihood Bond 6 (WLB Asset VI) with a tenor of four years. The startup followed this with an additional $10 million in April, raised through bonds allotted to BlueOrchard Microfinance Fund, also for a four-year tenor.

The board of Kinara Capital recently passed a resolution permitting the company to raise up to INR 1,300 Cr by allotting debentures and bonds. This move suggests the possibility of further financial boosts in the near future.

This funding initiative comes shortly after Kinara Capital announced an INR 500 Cr fund dedicated to supporting women entrepreneurs under its ‘HerVikas’ programme. Now in its fifth year, ‘HerVikas’ aims to empower female entrepreneurs by providing them with unsecured business loans and working capital loans, among other financial services. To date, Kinara Capital has disbursed loans totaling INR 700 Cr under this program.

Founded in 2011 by Hardika Shah, Kinara Capital has been a frontrunner in providing business loans to Micro, Small, and Medium Enterprises (MSMEs) through its app, myKinara. The startup boasts having disbursed over INR 4,000 Cr to more than 50,000 customers and currently operates more than 130 branches across India.

In 2022, the company raised $24 million in an equity funding round led by British International Investment, with participation from existing investors Nuveen and Triple Jump’s AMP fund. To date, excluding the latest debt funding, Kinara Capital has raised approximately $153 million.

In related news, IIX has recently provided $9 million in debt funding to the agricultural financing startup Sammunati, while AVIOM Housing Finance Corporation secured a $10 million debt funding from BlueOrchard Microfinance Fund last month.

Follow Startup Story