Kinara Capital, India’s pioneering lender for Micro, Small and Medium Enterprises (MSMEs) who do not have property collateral to pledge, has raised Rs 32 crore (around $5 million) in non-convertible debentures. The amount has been raised from ResponsAbility Investments AG - an asset manager that specializes in investment solutions to supply debt and equity financing predominantly to non-listed firms in emerging and developing economies.
Kinara Capital had last raised Rs 96 crore ($14.7 million) in October 2017 from mid-market private equity firm Gaja Capital, GAWA Capital and existing investors Patamar Capital and Michael & Susan Dell Foundation.
Commenting on the deal, Kinara’s Promoter and CEO Hardika Shah said, "At Kinara Capital, we are proud of our efforts of providing tailored financial products to micro and small businesses in India for their growing business needs. With responsibility, we share a common vision of financial inclusion and are pleased to have them as our partner as we continue to expand our reach and scope.”
Speaking on behalf of responsAbility, Senior Investment Officer Jaskirat Chadha said, “responsAbility-managed funds have been providing funding for financial institutions targeting micro, small and medium-sized enterprises for the past 15 years. We are pleased to partner with Kinara Capital, a successful player in the inclusive finance area that actively contributes to driving economic growth as well as increasing the standard of living of large sections of the population.”
Kinara Capital, is a registered trademark of Visage Holdings and Finance Private Ltd (NBFC) and has pioneered lending practices by innovating a financially inclusive solution to provide loans to entrepreneurs of micro-small-medium enterprises (MSMEs) without the need for property collateral. As on June 2018, Kinara has serviced 15,000-plus customers in six states and manages a portfolio of approximately Rs 450 crores. The company is backed by marquee investors Gaja Capital, GAWA Capital, Patamar Capital, and Michael & Susan Dell Foundation.
With $3 billion of assets under management invested in over 540 companies in 90 countries, responsAbility Investments AG is a leading asset manager in the field of development investments. The company supplies debt and equity financing to firms in emerging economies and offers investment solutions to private, institutional and public investors. Founded in 2003, responsAbility is headquartered in Zurich and has local offices in Bangkok, Hong Kong, Lima, Luxembourg, Mumbai, Nairobi, Oslo and Paris.