![[Funding alert] Fintech Startup Kinara Capital Closes Around INR 200 Cr Fund Led by BII](https://viestories.com/wp-content/uploads/2022/10/1-2022-10-28T164241.624.jpg)
The UK government’s development finance organization and impact investor, British International Investment (BII), has completed a new equity round of about INR 200 crore with Kinara Capital, a fintech serving Indian small company owners.
Existing equity investors Nuveen and the ASN Microkredietfonds advised by Triple Jump also participated in this round, as per reported by Entrepreneur.com.
According to a release, this equity investment would help Kinara Capital democratise access to formal financial inclusion through the myKinara App, enabling the company to grow five times by 2025 and reach an AUM of INR 6,000 crore.
“We are honored to onboard British International Investment (BII) as our latest equity investor. The combined expertise and capital infusion from BII, Nuveen and Triple Jump, will expand Kinara Capital’s offerings to meet the rising demand of the MSME sector in India. This year, India’s GDP growth has exceeded pre-pandemic levels signifying the resilience and growth prospects of small business entrepreneurs. With this support, we, at Kinara Capital, are further motivated to deliver on our mission of financial inclusion,” Hardika Shah, founder and CEO, Kinara Capital.
According to the firm, 300+ MSME sub-sectors in the production, trading, and service sectors can online apply for myKinara collateral-free business loans in the range of INR 1 to 30 lakhs. The myKinara App claims that it may speed up the loan decision and payout process for small business owners to 24 hours. In the next three years, Kinara Capital wants to reach more than 2,000 000 MSMEs in more than 100 Indian cities.
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“BII seeks to invest in companies that demonstrate strong development impact capacity and offer tech-enabled innovative solutions with high potential for scalability. Kinara Capital meets these criteria, and we are especially excited by its commitment to helping to expand financial inclusion to MSMEs, including increasing women’s access to finance which in turn promotes women’s entrepreneurship. I am pleased that our flexible capital will help boost productivity within India’s MSME sector and facilitate entrepreneurial growth that will continue to transform the nation’s economy,” said Manav Bansal, managing director and head of India, British International Investment.
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About Kinara Capital
By offering quick and flexible business loans without any type of collateral, Kinara Capital, an ethical fintech, is enabling small business owners in India to complete the last mile of their financial inclusion. IFC/World Bank has honoured Kinara as “Bank of the Year-Asia,” the Financial Times has listed Kinara as one of the “Top High-Growth Companies Asia-Pacific,” and the Economic Times has referred to Kinara as “India’s Growth Champions.” Kinara is led by a majority of women.
