[Update] Exclusive: Kinara Capital Bags INR 380 Cr From Nuveen Global Impact Fund

Update| 19th April, 4:35 PM

After Inc42 reported that Kinara Capital is raising funding from Nuveen Global and Triple Jump, the MSME lender today announced that it has raised INR 380 Cr ($46.9 Mn) in equity from Nuveen Global and Triple Jump. Kinara Capital has further claimed that it will disburse INR 10,000 Cr of MSME loans in next three years.

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Original Story| 13th April, 4:05 PM

Bengaluru-based fintech startup Kinara Capital is raising around $27.3 Mn in a fresh round of funding from Nuveen Global Impact Fund and Triple Jump. The MSME lending startup Kinara Capital has passed a resolution to allot a total of 3.2 Mn Class A1 equity shares to Nuveen Global and Triple Jump (via Pettelaar Effectenbewaarbedrijf N.V) for $27.3 Mn (INR 208.1 Cr). 

Both Nuveen Global Impact Fund and Triple Jump are well known global investors for microlending institutions all over the world. The round size can further increase to add more investors. Triple Jump counts Oxfam Novib, ASN Bank, NOTS foundation and its management as its founders.

The development has come almost six months after Kinara Capital had raised INR 70 Cr from Invest in Visions GmbH (IIV). The lendingtech startup is classified as an ESG by the European Union.

Founded in 2011 by Hardika Shah, Bengaluru-based Kinara Capital provides unsecured collateral-free loans between INR 1 Lakh and INR 30 Lakh to MSMEs using a digital-first approach. 

The startup claims to have disbursed more than INR 2,400 Cr through 65,000 loans which has created an income worth $100 Mn  for entrepreneurs. The MSME lending startup further claims that it has supported over 250K livelihoods.

Kinara Capital has committed INR 200 Cr through HerVikas, a women business loan program for the financial year FY22- FY23. Under the HerVikas programme, Kinara has already disbursed more than INR 125 Cr in loans across 2,000 HerVikas business loans. The lengitech startup claims to have supported a total of 6,000 women entrepreneurs to date with 28% repeat customers. 

Kinara Capital runs through more than 110 branches spread across 90 cities in India. 

Kinara Capital’s board has also passed a resolution to raise debt funding up to $91.8 Mn (INR 700 Cr) in a year in one or more tranches. The board has given a tenure of seven years to repay the debt. 

Kinara counts Gaja Capital, GAWA Capital, Michael & Susan Dell Foundation and Patamar Capital as its investors.

It competes against the likes of Mumbai’s Aye Finance, Sachin Bansal’s IPO-bound NAVI, CredAvenue, among others. 

It must be noted Aye Finance is also a portfolio company of Triple Jump. 

India’s overall fintech market opportunity is estimated to be $1.3 Tn by 2025, growing at a CAGR of 31% during 2021-2025. Of this, lending tech is likely to account for 47%, approximately $616 Bn.

As per an Inc42 plus report, around $1.38 Bn was raised by lendingtech startups last year, more than double of what was raised back in 2020. The overall sector is witnessing a boom underlining the need and the demand for online lending products in the market.