Kinara Capital Q4 Results: PAT surges 51% to Rs 62 cr

Kinara Capital

Kinara Capital, India’s rapidly growing fintech promoting MSME financial inclusion, announced its FY24 financial year results, marking the organization’s ninth consecutive year of profitability.

Closing the year with a profit after tax (PAT) of INR 62 crores, a 51 per cent year-on-year (YoY) increase, has shown the feasibility of Kinara’s unique business strategy of combining technology with omnichannel customer service. Kinara Capital’s income increased by 47 per cent year on year in FY24, reaching INR 723 crores, while operational expenses (OpEx) as a proportion of AUM fell by 32 per cent, raising yearly profits even further. Kinara Capital’s loan book increased by 26 per cent YoY in FY24, with year-end assets under management (AUM) totaling INR 3,142 crores.

Kinara Capital, which specialises in providing formal credit without property collateral to India’s small company entrepreneurs, is dedicated to financial inclusion in the micro, small, and medium-sized enterprise (MSME) sector. The fintech NBFC disbursed more than 26,343 new company loans in the last year, a 35 per cent rise year on year, thanks to its multilingual myKinara App that made lending more accessible. Kinara’s active MSME customer base expanded by 30 per cent YoY in FY24, while women-owned MSMEs had a 42 per cent YoY increase.

Hardika Shah, Founder & CEO, Kinara Capital, said, “Our resilient business model and our unwavering eye on the mission of financial inclusion has led to nearly a decade of growth and consecutive profitability. In FY24, beyond our high-touch and high-tech model, we also expanded our reach to MSMEs in other states with embedded finance solutions through partnerships. Looking ahead, we are excited as we set our sights on supporting thousands more MSMEs, doubling our AUM by FY26 and crossing the USD $100 million mark in revenues in FY25.”

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Kinara Capital disbursed more than INR 100 crores in FY24, showing a large prospect for new collaborations. Kinara Capital currently operates 133 branches in regions accounting for around 70 per cent of India’s manufacturing output. Thus, Kinara’s future expansion plans will be based on expanding into existing geographies via its branch-led approach and reaching out to new MSMEs through its partnerships model. The fintech will also strengthen its technology expertise by making significant long-term investments in its in-house technology to develop a Lending-as-a-Service (LaaS) set of customisable APIs that will allow it to interface with more partners in the future.

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