Non-banking lender, Kinara Capital has raised $10 million (Rs 74 crores) from IndusInd Bank with a 100 percent guarantee from the US International Development Finance Corporation (DFC). This debt funding is part of an ongoing debt and equity raising round worth Rs 100 crore.

Existing investors Gaja Capital, GAWA Capital, Michael & Susan Dell Foundation (MSDF), and Patamar Capital also participated in this round. This investment will be used by Kinara Capital towards the expansion of MSME financial inclusion across manufacturing, trading, and services sectors in India.

Based in Bangalore, Kinara Capital focuses on providing fast and easy loans to small and medium size businesses for a tenure of 12-60 months. The company also provides small loans worth 2-25 lakh without asking for any collaterals. According to the company so far it has disbursed loans worth Rs 2000 crore to over 36000 customers. The firm has also helped create over 250,000 jobs and has impacted over 1,000,000 lives so far.

The $10 million investment for onward lending to small business entrepreneurs will be deployed over five years from IndusInd Bank’s Impact Investing division with backing from DFC, part of the US federal government and an emerging markets impact leader. This three-way partnership between Kinara Capital, IndusInd Bank, and DFC unites the organisations’ shared goals to promote entrepreneurship, financial inclusion, and job creation.

Hardika Shah, Founder & CEO, Kinara Capital said, “Our partnership with IndusInd and DFC underscores our shared commitment to ease the credit hurdle faced by most small business entrepreneurs in India.” “MSMEs galvanise India’s economy with income generation and job creation, and there is an ever-increasing demand for financing for businesses to rebuild and grow this year. This investment from IndusInd Bank and DFC will accelerate financial inclusion of small businesses, thereby invigorating local economies,” she added.