Kinara Capital snaps Rs 70 crores from Invest in Visions GmbH

Bangalore-based small business finance provider, Kinara Capital has raised EUR 8 million (INR 70 crores) from Invest in Visions GmbH (IIV).

Agents for Impact, a sustainability connector of investors and social impact organizations, arranged this transaction for Invest in Visions and managed all commercial and legal aspects of this transaction for Invest in Visions.

Classified as an ESG Impact Fund by the European Union, Kinara Capital will further IIV’s Microfinance fund’s mandate of enabling credit access to small businesses.

Kinara has accelerated early access to credit with data-based credit decisioning and fully digital processes that facilitate a 24-hour turnaround time from loan application to loan disbursements. 

Fast access to capital without property collateral addresses the primary obstacles faced by the micro-small-medium enterprise (MSME) sector in India. This fund will unlock access for hundreds of MSMEs to get loans in the range of Rs 1-30 lakhs. 

In addition, Kinara’s HerVikas program for women entrepreneurs is addressing systemic inequalities and providing an upfront discount on collateral-free business loans.

Speaking on the fundraise, Hardika Shah, Founder & CEO of Kinara Capital said, “Kinara Capital and Invest in Visions GmbH started our journeys a decade ago and our paths have finally crossed. We are joining hands to enable the financial inclusion of even more MSMEs in India. Dedicated support from Agents for Impact to execute this transaction underscores our transparent processes and our focus on achieving measurable social impact. We are honored to partner with both IIV and AFI whose goals align extremely well with ours.”

Commenting on the funding in Kinara Capital, Edda Schröder, Founder and Managing Director, Invest in Visions GmbH (IIV) said, “IIV is pleased to partner with innovative leader Kinara Capital that is creating possibilities for the underserved small businesses in India. We recognized the immediate impact that accesses to credit can have on the local economy with quick income generation, so micro and small business financing in developing nations has always been our top priority. AFI eased the transaction for us by conducting a full assessment so that we confidently entered into the deal knowing that our Microfinance fund’s directive will be met in India.”

Further commenting on the funding round, Dr. Andrij Fetsun, CEO of Agents for Impact (AFI) said, “We are thrilled to have supported both IIV and Kinara Capital in their aligned mission of financial inclusion. Our goal is to perfectly match the needs and requirements of ESG investors and social impact organizations. In this case, we conducted due diligence of processes and practices and mapped social impact performance with consideration for the ground reality in India. Our efforts bring peace of mind to both parties so that they can focus on what they do best to service micro & small business entrepreneurs.”