Kinara Capital gets Rs 70 cr from Invest in Visions

BANGALORE/FRANKFURT: Kinara Capitalhas secured EUR 8 million (Rs 70 crores) from Invest in Visions GmbH (IIV). Agents for Impact (AFI), a sustainability connector of investors and social impact organizations, arranged this transaction for Invest in Visions and managed all commercial and legal aspects of this transaction.

Classified as an ESG Impact Fund by the European Union, Kinara Capital will further IIV’s Microfinance fund’s mandate of enabling credit access to small businesses.

Kinara has accelerated early access to credit with data-based credit decisioning and digital processes that facilitate a 24-hour turnaround time from loan application to loan disbursements. Fast access to capital without property collateral addresses the primary obstacles faced by the micro, small, medium enterprise (MSME) sector in India. This fund will unlock access for hundreds of MSMEs to get loans in the range of Rs 1-30 lakh. In addition, Kinara’s HerVikas program for women entrepreneurs is addressing systemic inequalities and providing an upfront discount on collateral-free business loans.

Invest in Visions GmbH established the first microfinance fund in Germany and since has expanded to specializing in SME financing, renewables and education. IIV seeks to invest in ethical organizations that can demonstrate sustainable profitability and social impact. AFI plays the role of advising IIV on loan transactions wherein it, inter-alia, conducts verification and plausibility check of investee organizations based on the German Federal Financial Supervisory Authority’s recommendation to assess sustainability risk and its ability to deliver measurable social impact.

“We are joining hands to enable financial inclusion of even more MSMEs in India. Dedicated support from Agents for Impact to execute this transaction underscores our transparent processes and focus on achieving measurable social impact,” said Hardika Shah, Founder & CEO, Kinara Capital, in a statement.

“We recognized the immediate impact that access to credit can have on the local economy with quick income generation, so micro and small business financing in developing nations has always been our top priority,” said Edda Schröder, Founder and Managing Director, Invest in Visions GmbH (IIV), in a statement.

In a statement, Andrij Fetsun, CEO, AFI said, “Our goal is to match the needs and requirements of ESG investors and social impact organizations. In this case, we conducted a due diligence of processes and practices, and mapped social impact performance with consideration for the ground reality in India.”

Partnership between Kinara Capital, Invest in Visions GmbH (IIV), and AFI to advance financial inclusion will meet multiple United Nations Sustainable Development Goals (UN SDGs).


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