Dvara KGFS, a prominent rural fintech focused on promoting financial inclusion in deep rural communities across India, successfully raised $27 million in debt capital. This boost will be critical in increasing the company’s liquidity and expediting its expansion goals. Dvara KGFS also just reached a huge milestone, surpassing INR 2000 crore in Assets Under Management. This milestone demonstrates the company’s outstanding performance and dedication to offering complete financial services to underrepresented rural regions.
Speaking about the funding, LVLN Murty, Managing Director and CEO, Dvara KGFS, said, “Dvara KGFS, being a rural fintech, aims to provide holistic financial services to its customers, empowering them to enhance their financial well-being and lifetime value. The funds raised will enable us to expand our reach and impact, driving financial inclusion in rural India.”
The company received $20 million in External Commercial Borrowings (ECB) from NEDERLANDSE FINANCIERINGS-MAATSCHAPPIJ VOOR ONTWIKKELINGSLANDEN N.V. (FMO), a Dutch entrepreneurial development bank committed to creating development impact, and $7 million from ENABLING QAPITAL Luxembourg SA, a leading Impact Investment Advisory Company dedicated to achieving financial and social returns. This funding from significant global impact investors demonstrates Dvara KGFS’s influence in the Indian financial inclusion area and will open up new opportunities for global partnerships.
Commenting on the same, Shilpa Bhatter, CFO, Dvara KGFS, added, “This fundraising 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.”
The company intends to use the revenues from the ECBs to fund its onward lending programme, with an emphasis on microfinance and microbusiness loans for consumers in areas with limited access to official credit channels. This programme strengthens the company’s objective to provide complete financial services to underrepresented rural regions.
Also Read | Financial Inclusion Redefined: Dvara KGFS’ Tech-Driven Approach To Empower Rural Communities
Dvara KGFS uses an omnichannel approach to deliver loans and third-party solutions targeted to its consumers’ different financial demands. The organisation remains committed to closing the financial gap and empowering individuals and communities through financial services. With the success of this fundraiser, Dvara KGFS is poised to greatly increase its influence on the lives of underprivileged people in rural India.
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