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Kinara Capital gets debt funding from Swiss impact investor ResponsAbility
Photo Credit: Shah Junaid/VCCircle

Non-banking financial company Kinara Capital said it has raised Rs 32 crore ($5 million) from Switzerland-based impact investor ResponsAbility Investments AG by issuing non-convertible debentures.

“With ResponsAbility, we share a common vision of financial inclusion… as we continue to expand our reach and scope,” Hardika Shah, promoter and CEO at Kinara, said in a statement.

ResponsAbility provides debt and equity financing predominantly to non-listed companies in emerging economies.

Kinara, which focuses on micro, small and medium enterprises, had last raised Rs 96 crore ($14.7 million) in October 2017.

The round was led by mid-market private equity firm Gaja Capital and included a new investor, Spanish impact investment firm Gawa Capital. Existing investors Michael and Susan Dell Foundation and Unitus Impact Fund, too, had participated in the round, while Shriram City Union Finance had exited the company.

Kinara Capital, which is operated by Visage Holdings and Finance Pvt. Ltd, was founded by Shah in 2011. Shah, who spent several years as a management consultant, globally, started the company to provide collateral-free loans to small businesses. Kinara provides loans of Rs 1-15 lakh to MSMEs, filling the gap between microfinance and commercial capital.

As on June 2018, Kinara had serviced more than 15,000 customers in six states and managed a portfolio of about Rs 450 crore, the statement said.

Founded in 2003, ResponsAbility has assets under management invested in over 540 companies in 90 countries.

Last year, ResponsAbility along with Belgium-based Incofin Investment Management had invested $20 million (nearly Rs 130 crore) in Sohan Lal Commodity Management Pvt. Ltd, a Delhi-based farm logistics services provider.

Its other bets in India include biomass aggregator Punjab Renewable Energy Systems, sanitary services provider Saraplast Pvt. Ltd and BPO service provider DesiCrew Solutions Pvt Ltd.

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