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Non-banking finance company Dvara KGFS on Wednesday said it has raised USD 10 million in debt funds.
The funds secured would be instrumental in augmenting the company's capital adequacy and accelerating its growth plans during the current financial year.
Netherlands-based financial inclusion investor Triple Jump Financial Inclusion Resilience Fund B.V., has provided USD 5 million as subordinated debt in the form of External Commercial Borrowings (ECBs) as per the Reserve Bank of India guidelines.
"This strategic partnership will further strengthen DVARA KGFS' mission to extend its comprehensive financial services to underbanked communities," Dvara KGFS said in a statement.
Additionally, the company raised USD 5 million from Switzerland-based investment manager BlueOrchard Finance Ltd through ECBs.
The proceeds would be allocated towards Dvara KGFS onward lending programme which aims to support microfinance and microbusiness loan customers in regions with limited access to credit channels.
"The funds raised will enable us to expand our reach and impact, driving financial inclusion in rural areas." Dvara KGFS Managing Director and CEO LVLN Murty said.
The fund raise not only diversifies the lender profile but also strengthens the company's presence in the foreign debt market, Dvara KGFS CFO Shilpa Bhatter said.
Dvara KGFS employs an omni-channel reach and service model, offering wide range of loans and third party distribution products to meet the diversified financial needs of customers.
The company has 378 branches and close to 9,000 digital agents across 10 states in the country, the statement added.
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