MICROCAPITAL BRIEF: Kinara Capital Raises $50m in Equity from Nuveen, ASN Microkredietfonds to Boost Lending to MSMEs in India

India’s Kinara Capital recently raised INR 3.8 billion (USD 50 million) in equity from the Global Impact Fund of US-based Nuveen, which led the investment round, and ASN Microkredietfonds, which is advised by the Netherlands’ Triple Jump, to boost Kinara’s lending to micro-, small and medium-sized enterprises (MSMEs) in India. According to Kinara Founder and CEO Hardika Shah, “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 issues MSMEs collateral-based and collateral-free loans that range in size from INR 100,000 (USD 1,300) to INR 3 million (USD 40,000) and are intended for purposes such as working capital and asset purchases. Although the firm promises “digital first” loans with decisions within 24 hours, it also provides services at customers’ locations and via 110 branches. Kinara also has programs for invoice discounting and women business owners. The lender is listed on the Bombay Stock Exchange as a debt entity under the registered company name Visage Holdings and Finance Private Limited. As of March 2021, the company reported after-tax profit of INR 75 million (USD 1 million) on one-year income of INR 2.36 billion (USD 31.5 million) and total assets of INR 11.3 billion (USD 151 million).

Founded in 1898, Nuveen is based in the city of Chicago. As of December 2021, it manages assets valued at USD 1.3 trillion. Nuveen is an affiliate of the US-based Teacher’s Insurance and Annuity Association of America (TIAA).

ASN Microkredietfonds, is a fund formed in 1996 by the Netherlands’ ASN Bank and the Dutch NGO Oxfam Novib. It invests in companies providing financial services in developing countries in Africa, Eurasia and Latin America. As of 2020, its investees served 430,000 entrepreneurs.

Founded in 2006 and headquartered in Amsterdam, Triple Jump’s 80 staff members manage five investment funds that invest in debt, equity and other funds. Its investments focus on agriculture, housing, sustainable energy, microfinance, and small and medium-sized enterprise. In addition, the firm offers advisory services to financial intermediaries seeking to develop inclusive financial markets. Across 182 portfolio companies in 69 countries, the firm manages investments worth EUR 907 million (USD 1.1 billion), as of 2020 fiscal year

By Hasnat Aslam, Research Associate

Sources and additional resources

Kinara press release
https://www.kinaracapital.com/news/fintech-kinara-capital-secures-inr-380-cr-in-equity-led-by-nuveen/

Kinara homepage
https://www.kinaracapital.com/

Nuveen homepage
https://www.nuveen.com/

TIAA homepage
https://www.tiaa.org

Global Impact Fund description
https://www.nuveen.com/global/investment-capabilities/ucits/ugci-nuveen-global-core-impact-bond-fund

Triple Jump homepage
https://triplejump.eu/

ASN Microkredietfonds description
https://triplejump.eu/fund/asn-microcredit-fund/

ASN Bank homepage
https://www.asnbank.nl/

Oxfam Novib homepage
https://www.oxfamnovib.nl/

Crunchbase profile on ASN Microkredietfonds
https://www.crunchbase.com/organization/asn-microkredietfonds