How Kinara Capital's MSME Focus Ensured Nine Years of Profit

Bold Beginning

Hardika Shah founded Kinara Capital in 2011 and chose to offer collateral-free loans to MSMEs

MSMEs - Backbone Of The Economy

MSMEs in India grew from 26.1 million (2011) to 75 million (2023), employing 123 million individuals by FY23.

Early Challenges And Breakthrough

Shah faced difficulty maintaining revenue and controlling costs. The first profitable year was FY15 after three years of struggle.


Kinara Capital expanded its loan products to meet diverse MSME needs. The NBFC serves over 50 sectors, including textiles, food, and construction.

Resilient Through Crises

Despite industry challenges like demonetization and COVID-19, Kinara remained profitable. Flexible strategies helped manage non-performing assets (NPAs).

Tech-Driven Strategy

Implemented a "High Touch-High Tech" model. Digital tools streamlined loan approval and collections processes.

Expansion and Reach

Kinara Capital has 125 physical branches across 100+ cities. 90% of customers come from physical branches, 10% from digital platforms.

Future Growth Plans

Raised $178 million from investors. It aims to double AUM and reach $100 million in revenue by FY25.

How Kinara Capital Stayed Profitable For Nine Years With Its “Only For MSME” Ethos