DVARA KGFS RAISES INR 70 CRORES FROM NORDIC MICROFINANCE INITIATIVE
Hyderabad, 26th September 2019: Dvara KGFS today announced that they have raised INR 70 Crores from Nordic Microfinance Initiative (NMI) as a final phase to the Series E round of equity infusion. The funding, with NMI as the new investor, will allow Dvara KGFS to expand its current operations and pursue inorganic growth opportunities that further augment the company’s mission of enabling financial access to millions of low-income households in remote rural India. The funds will also allow the company to invest in scaling up its technology infrastructure to support innovation and accessibility of products and services.
Samir Shah, Executive Vice-Chair & Group President of Dvara Trust, commented, "We are delighted to partner with NMI at Dvara KGFS and look forward to tapping into their significant experience in financial inclusion both in India and overseas. We also welcome Thomas Klungsoyr onto the Board of Dvara KGFS.”
This equity funding comes in the backdrop of a rating upgrade from BBB- to BBB that the company received earlier this month from ICRA. The rating upgrade reinforced the strong collection efficiency witnessed across Dvara KGFS operations and is an affirmation of the management team’s ability to execute the company’s growth plans while maintaining its strong financial position. The rating upgrade, followed by this equity infusion, is a significant boost to the company’s strategic plans as it charts the next phase of its growth.
Commenting on the equity investment, Joby C O, Chief Executive Officer, Dvara KGFS, said,
“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. Our business model promotes 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.”
On joining Dvara KGFS as an investor, Arthur Sletteberg, Managing Director, NMI, said, “We are very impressed with what Dvara KGFS has accomplished by setting the client at the core of their financial solutions. Investing into 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. 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. We are confident that Dvara KGFS will further build on their success and are very happy to join the company and together reach our strategic goals.”
This investment was preceded by 97 Crores 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 thus successfully raised a total of INR 167 Crores in the Series E round.