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Chennai's Dvara KGFS raises $7 million in debt through ECB from Enabling Capital

ISN Team
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LVLN Murty, Managing Director & CEO, Dvara KGFS

LVLN Murty, Managing Director & CEO, Dvara KGFS

Chennia-based NBFC firm Dvara Kshetriya Gramin Financials (Dvara KGFS) has raised $7 million in debt through External Commercial Borrowings (ECBs). This marks the second time Dvara KGFS has secured funds through this route. 

The funding was led by Enabling Qapital (EQ), a regulated Impact Asset Manager dedicated to investments that provide both financial and social returns.

"We are delighted to have this repeat round of debt raise from Enabling Qapital and we look forward to working with them more closely in future to foster our common objectives of expanding sustainable and customer-centric financial inclusion initiatives," said LVLN Murty, Managing Director and CEO of Dvara KGFS.

What does Dvara KGFS do?


Incorporated in August 2008, Dvara KGFS is a medium-tier NBFC that provides loans and other financial services to more than 2.41 million customers in rural India. 

It takes an omnichannel approach and operates over 400 branches in 110 districts in 10 states, including Tamil Nadu, Uttarakhand, Uttar Pradesh, Chhattisgarh, Jharkhand, and Bihar.

The funding comes almost a month after it raised a debt of $10 million from BlueOrchard Microfinance Fund.

Purpose of fundraising

The newly raised funds will be used for ongoing lending activities and for creating wealth opportunities in India's deep rural areas. 

The initiative is a part of Dvara KGFS's broader strategy to support sustainable financial inclusion. LVLN Murty highlighted the significance of these funds, stating, "This newly raised funds will be utilised towards ongoing lending activities and creating wealth opportunities for deep rural parts of India."

Diversifying funding sources

Shilpa Bhatter, CFO of Dvara KGFS, emphasized the company's efforts to diversify its funding sources.

Over time, Dvara KGFS has actively engaged with like-minded impact investors and tapped into global debt markets to fuel its growth plans. This strategy not only supports their expansion efforts but also increases their funding resilience.

Bhatter noted, "Dvara KGFS has significantly diversified its funding sources and has been actively engaging with like-minded impact investors."