India: Dvara KGFS Raises Rs 70 Crore from Nordic Microfinance Initiative

Sep 2019
India, September, 25 2019 - Dvara KGFS on Wednesday announced that it had raised Rs 70 crore from Nordic Microfinance Initiative (NMI) in the final phase to the Series E round of equity infusion.

"We look forward to partner with NMI and tap into their significant experience in financial inclusion both in India and overseas," said Samir Shah, Executive Vice-Chair and Group President of Dvara Trust. "The opportunity available for NBFCs in India is tremendous and the scope of financial inclusion is immense. At Dvara, our focus is vast because we do not look at only the untapped financial population but also the undertapped population in the country."

Dvara KGFS has a presence in Tamil Nadu, Uttarakhand, Karnataka, Chhattisgarh, Odisha and Jharkhand. It is spread across 46 districts with 276 branches and more than 1 million enrolled customers. NMI is a public-private partnership owned by the Norwegian and Danish governmental funds for developing countries that invests in microfinance institutions in Asia and Africa.

"The investment by NMI in Dvara KGFS is a strong affirmation of the unique financial inclusion model - KGFS Model - followed by Dvara KGFS, targeting the customers in the remote rural villages in India," said Joby CO, Chief Executive Officer, Dvara KGFS. "Our business model promoted a wealth management approach and multi product delivery for customers both retail and enterprises in the local geography. NMI adds to our very strong pack of impact investors and adds immense value to our board." Thomas Klungsoyr, Investment Director at NMI has joined the Board of Dvara KGFS.

This equity funding comes in the backdrop of a rating upgrade to BBB- to BBB from ICRA earlier this month. The investment was preceded by 97 crore that Dvara KGFS had separately raised in equity funding in April 2019. The current investors in the company, including NMI, are Stakeboat Capital, Leapfrog Investments, Accion and Dvara Trust. Dvara KGFS has raised a total of Rs 167 crore in the Series E round.

"Investing in Dvara KGFS has been a rather easy choice in terms of the shared vision of full financial inclusion and providing our clients with more than only credits," said Arthur Sletteberg, Managing DIrector, NMI. "We also like the strong role of the promoter Dvara Trust as a key enabler for reaching out to rural clients using their high tech but human centred approach."


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