The funding is to strengthen financial inclusion efforts in rural INDIA
Mumbai, 21st February 2024 - Dvara KGFS, a leading rural fintech, dedicated to fostering financial inclusion in deep rural villages across India, has successfully 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. Additionally, Dvara KGFS recently achieved a significant milestone, crossing the INR 2000 crore mark in Assets Under Management (AUM). This milestone underscores the company's strong performance and commitment to providing comprehensive financial services to underserved rural communities.
Speaking about the funding, Mr. LVLN Murty, Managing Director and CEO, Dvara KGFS, said, "Dvara KGFS, being a rural fintech, aims to provide holistic financial services to its customers, empowering them to enhance their financial well-being and lifetime value. 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 NEDERLANDSE FINANCIERINGS-MAATSCHAPPIJ VOOR ONTWIKKELINGSLANDEN N.V (FMO), a Dutch entrepreneurial development bank committed to creating development impact and $7 million was raised from ENABLING QAPITAL Luxembourg SA, a leading Impact Investment Advisory Company dedicated to achieving financial and social returns. This funding from large global impact investors is a testament to the impact that Dvara KGFS is creating in the financial inclusion space in India and will open more avenues for global partnerships.
Commenting on the same, Ms. Shilpa Bhatter, CFO, Dvara KGFS, added, "This fundraising not only diversifies our lender profile but also strengthens our presence in the foreign debt market, unlocking access to lower-cost debt and ensuring a sustainable growth path for Dvara KGFS."
The company aims to utilize the proceeds of the ECBs towards its onward lending program, focusing on supporting microfinance and microbusiness loans for customers in regions with limited access to formal credit channels. This initiative further fortifies the company's mission to extend comprehensive financial services to underserved rural communities.
Utilizing an omnichannel approach, Dvara KGFS provides an array of loans and third-party products tailored to meet its customers' diverse financial needs. The company remains steadfast in its commitment to bridging the financial gap and empowering individuals and communities through financial services. With the success of this fundraise, Dvara KGFS is positioned to significantly enhance its impact on the lives of underserved individuals in rural India.
About Dvara KGFS:
Dvara KGFS, a systematically important NBFC in the Dvara Group regulated by RBI, works with a mission to maximise the financial well-being of every individual and every enterprise by providing complete access to financial services in remote rural India. Dvara KGFS has a strong presence across 10 states with 378 branches with 10281 digital agents reaching more than 2.38 million customers. Please click here to know more: www.dvarakgfs.com
