DVARA KGFS Raised Equity Of 3Mn Euros, Subordinated Debt Of 5Mn USD
FinTech BizNews Service
Mumbai, May 22, 2025: Dvara Kshetriya Gramin Financial Services (Dvara KGFS), a major NBFC working in India’s financial inclusion space, has successfully raised Equity of 3Mn Euro from Sparkassen International Development Trust GmbH (SIDT) and 5Mn USD 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 to Micro 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.
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.
Speaking about the funding, Mr. LVLN Murty, Managing Director and 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 This fund raise not only fortifies our capital base but also validates the impact driven, resilient path we have charted in the financial inclusion ecosystem. The company is investing in digital transformation using artificial intelligence for enhancing operational efficiency and customer experience.”
On the development, Ms. Shilpa Bhatter, CFO, Dvara KGFS, said, “We have embodied highest standards of corporate governance and financial discipline in our organization. This infusion of capital reinforces our commitment to ethical and prudent portfolio management and further fortify our lending infrastructure by investing more meaningfully into state of the art technology and data analytics capabilities, thereby strengthening our core operations while continuing to deliver measurable social and financial outcomes.”
Sharing his thoughts, Mr. Carsten Steffan from Sparkassen International Development Trust GmbH said, “We are pleased to support Dvara KGFS in its mission to improve financial access in rural India. As part of the Sparkassen-Finanzgruppe, our focus is on enabling responsible and inclusive financial services in emerging markets. This investment reflects our commitment to creating sustainable impact by supporting institutions that demonstrate deep local insight, strong governance, and scalable models. We look forward to a long-term collaboration that contributes to financial empowerment and community development in India.”
Dvara KGFS provides an array of loans and third-party products tailored to meet its customers' diverse financial needs through an omnichannel approach. It remains steadfast in its commitment to bridging the financial gap and empowering individuals and micro businesses through its financial services in the inclusion space. With the success of this fundraise, Dvara KGFS is positioned to significantly enhance its impact on the lives of its customers.
Dvara KGFS
Dvara KGFS is a Middle Layer NBFC registered with the Reserve Bank of India. Its mission is to maximize the financial well-being of individuals and nano and micro-businesses in India. With a strong presence in 11 states including Tamil Nadu, Uttarakhand, Uttar Pradesh, Karnataka, Chhattisgarh, Jharkhand, Punjab, Bihar, Haryana, Odisha and Andhra Pradesh , Dvara KGFS operates across 110 districts with over 425 branches, serving more than half a million customers. Learn more at www.dvarakgfs.com.
FMO:
FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs.
Sparkassen International Development Trust GmbH (SIDT):
As part of the Sparkassen Group, SIDT focuses on equity investments in financial institutions in developing countries, providing proactive support to foster sustainable economic and social development.
The Sparkassen Group, established in Germany over 200 years ago, is considered one of the largest financial groups in the world. It has a strong focus on local communities, SMEs, and retail banking. The Group combines exceptional financial professionalism with a strong social mandate, supporting its member institutions in ensuring permanent access to financial services for their customers.
