Nuveen’s Impact Fund Leads $50 Million Capital Raise for India MSME Lender Kinara
India-based micro and SME-focused (MSME) fintech Kinara Capital announced that it has raised $50 million in a new funding round led by investment manager Nuveen, through its Global Impact Fund, with participation from Dutch impact-focused investor Triple Jump.
According to Kinara, the financing will be used for the expansion of products and services to meet the increasing MSME credit demand in India.
Hardika Shah, Founder & CEO, Kinara Capital, said:
“This fresh equity round will energize us to scale faster so that we can continue doing what we do best, which is to bring more small business entrepreneurs into the fold of financial inclusion.”
Kinara Capital serves small business entrepreneurs across India. With the use of AI/ML, the company’s myKinara app takes MSME applicants through the process of loan decision to disbursement within 24 hours. The company aims to grow by 500% by 2025 and plans to disburse $1 billion of MSME business loans in the next three years.
The investment follows the recent final close by Nuveen of its Global Impact fund, raising $218 million for the firm’s first private equity impact fund. The fund’s impact strategy focuses on investments aimed at addressing critical sustainable development challenges, including climate change and income inequality.
Rekha Unnithan, Managing Director & Co-Head of Private Impact Investing, Nuveen, said:
“Taking a digital-first approach without compromising on human customer service, Kinara has outclassed others with its ability to address the pain points of MSMEs in India. With a decade worth of proprietary data, Kinara has perfected its qualification processes and turnaround time. We at Nuveen are proud to invest fully in Kinara Capital, and together, we will turn to the next chapter of growth.”
Orsolya Farkas, Equity Manager, Triple Jump, added:
“Triple Jump is proud to invest in Kinara Capital which is leading with a sustainable business model and creating a systemic shift in how small business entrepreneurs should be considered and served, especially women entrepreneurs.”
