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Dvara KGFS secures $10 million in debt financing to strengthen financial inclusion efforts in rural India


CHENNAI, JULY 12, 2023

Dvara KGFS, a leading non-banking finance company focused on fostering financial inclusion in deep rural areas across India, announced its successful raising of $10 million in debt funds. The fundraiser will be instrumental in augmenting the company’s capital adequacy and accelerating its growth plans in the current financial year.

Triple Jump Financial Inclusion Resilience Fund B.V., a prominent financial inclusion investor from the Netherlands, has provided $5 million to Dvara KGFS as subordinated debt in the form of External Commercial Borrowings (ECBs) under the automatic route of the Reserve Bank of India. This strategic partnership will further strengthen Dvara KGFS’ mission to extend its comprehensive financial services to underbanked communities.

Additionally, Dvara KGFS has secured $5 million from a Blue Orchard managed fund. Blue Orchard Finance Ltd, is a leading global impact investment manager based in Switzerland, as senior secured debt through ECBs under the automatic route of the RBI. The proceeds of the facility will be allocated towards Dvara KGFS’ onward lending program, which aims to support microfinance and microbusiness loan customers in regions with limited access to formal credit channels.

Dvara KGFS employs an omni-channel reach and service model, offering a wide range of loans and third-party distribution products to meet the diverse financial needs of its customers. The company’s robust infrastructure spans 378 branches & close to 9000 Digital Agents across 10 states in India, positioning it for a strong and profitable growth trajectory.

Dvara KGFS Managing Director and CEO LVLN Murty said, “Dvara KGFS aims to provide holistic financial services to its customers, empowering them to enhance their financial well-being and life-time value. The funds raised will enable us to expand our reach and impact, driving financial inclusion in rural areas.”

“This fund raise 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,” said Shilpa Bhatter, CFO – Dvara KGFS.

Dvara KGFS remains dedicated to its vision of bridging the financial divide and empowering individuals and communities through inclusive financial services. With this successful fund raise, the company is poised to make an even greater impact on the lives of underserved individuals in India’s rural heartlands.

In recognition of its strong financial position and performance, Dvara KGFS was recently upgraded from BBB to BBB+ by Care Ratings, further validating the well capitalized business of the company, its experienced governance structure, and its commitment to scale up operations and profitability on a sustained basis.

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