Saturday, July 20, 2024

Dvara KGFS Raises $7 Million in Debt from Enabling Qapital

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Chennai-based non-banking financial company (NBFC) Dvara Kshetriya Gramin Financial Services (Dvara KGFS) has secured $7 million in debt through External Commercial Borrowings (ECBs). This is the second time Dvara KGFS has raised funds through this method. The funding was led by Enabling Qapital (EQ), an impact asset manager focused on investments that deliver both financial and social returns.

“We are delighted to have this repeat round of debt raise from Enabling Qapital and we look forward to working with them more closely in the future to foster our common objectives of expanding sustainable and customer-centric financial inclusion initiatives,” said LVLN Murty, Managing Director and CEO of Dvara KGFS.

What Does Dvara KGFS Do?

Established in August 2008, Dvara KGFS is a mid-tier NBFC that provides loans and other financial services to over 2.41 million customers in rural India. The company adopts an omnichannel approach, operating more than 400 branches across 110 districts in 10 states, including Tamil Nadu, Uttarakhand, Uttar Pradesh, Chhattisgarh, Jharkhand, and Bihar.

This funding comes shortly after Dvara KGFS raised $10 million in debt from BlueOrchard Microfinance Fund.

Purpose of Fundraising

The newly acquired funds will be used to support ongoing lending activities and to create wealth opportunities in India’s rural areas. This initiative is part of Dvara KGFS’s broader strategy to enhance sustainable financial inclusion. LVLN Murty emphasized the importance of these funds, stating, “This newly raised capital will be utilized towards ongoing lending activities and creating wealth opportunities in the deep rural parts of India.”

Diversifying Funding Sources

Shilpa Bhatter, CFO of Dvara KGFS, highlighted the company’s efforts to diversify its funding sources. Over time, Dvara KGFS has actively engaged with like-minded impact investors and tapped into global debt markets to support its growth plans. This strategy not only aids their expansion efforts but also strengthens their funding resilience. Bhatter noted, “Dvara KGFS has significantly diversified its funding sources and has been actively engaging with like-minded impact investors.”

Dvara KGFS’s successful fundraising efforts reflect its commitment to providing financial services in rural India and its strategic approach to securing diverse funding sources to fuel its mission of financial inclusion.

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