Dvara KGFS raises funds to augment growth plans

Chennai, May 23 (PTI) Dvara Kshetriya Gramin Financial Services (Dvara KGFS) has raised equity of Euro 3 million from Sparkassen International Development Trust GmbH (SIDT) and USD 5 million through issuance of subordinated bonds to FMO Entrepreneurial Development Bank.

The infusion of the capital in the city-based company, would further strengthen its capital base and augment growth plans.

Sparkassen International Development Trust (SIDT) GmbH is part of the German Sparkassen Group, deemed one of the largest financial groups in Europe.

SIDT has launched its first equity participation in the Indian financial inclusion space with this investment in Dvara KGFS.

The first investment by FMO Entrepreneurial Development Bank supervised by the Dutch Central Bank was infused in Dvara KGFS in FY2024.

Commenting on the development, Dvara KGFS Managing Director and CEO LVLN Murty said, "At a time when the inclusion space in India is witnessing unprecedented challenges, this fund raise is a testimony of the resilience, agility and scalability of the Dvara KGFS business model and lending infrastructure." "This fund raise not only fortifies our capital base but also validates the impact-driven, resilient path we have charted in the financial inclusion ecosystem. The company is investing in digital transformation using artificial intelligence for enhancing operational efficiency and customer experience," Murty said in a company statement on Friday.

"With the strong backing of our highly reputed investors and lenders, we are confident of our ability to deepen our impact in providing finance to the underserved and reinforce our mission to enable financial well-being at the last mile by opening 50 branches in this financial year that would originate Enterprise Loans exclusive, thereby taking the total branch strength to 477 by the end of this fiscal," he added.

Dvara KGFS provides loans and third party products tailored to meet its customers' diverse financial needs through an omnichannel approach.

It has presence in 11 states, operates across 110 districts with 425 branches, the company said. PTI VIJ ROH