India: Dvara KGFS Raises Euro 8 Million in ECBs
India, March, 23 2021 -
Dvara KGFS, a non-deposit-taking NBFC based in Chennai, on Monday said it has raised euro 8 million from European social impact funds, Invest In Visions, Germany (IIV) and Darlehenskasse Muenster, Luxembourg (DKM), in external commercial borrowings (ECBs).
The company intends to deploy ECB proceeds for onward lending programme to support its microfinance as well as small business customers in more than 9,000 deep rural villages with little or no access to formal means of credit.
The company has designed these micro loans to suit dynamic requirements of its customers and potentially enhance their means of livelihood.
Joby C O, CEO, Dvara KGFS, said: “We are happy that through Agents For Impact (AFI), we have been able to raise euro 8 million in ECBs from globally renowned impact funds. This helps us to diversify our fund-raising effort to foreign institutional investors and DFIs. The funds will be utilised to fund our microfinance customers and micro enterprise customers in rural parts of India. We fund a variety of small businesses, including retail shops, small dairies and agri entrepreneurs, and this would help customers to restart their businesses after Covid.”
Dvara KGFS has a strong presence in Tamil Nadu, Uttarakhand, Karnataka, Chhattisgarh, Odisha and Jharkhand with its 308 remote rural branches spread across 48 districts servicing more than one million enrolled customers.
Andrij Fetsun, CEO of AFI, said: “AFI’s goal is to bring in new investment opportunities from India and around the globe to receive funding from Invest in Visions GmbH and this deal is an evidence to our commitment and determination to achieve such goal. I am excited to see the positive impact and effect that this loan will have on micro enterprises and entrepreneurs in deep rural and remote parts of India.”