Nuveen seeks out innovative companies transforming economies and solving real-world problems, says Unnithan
Chicago-Amsterdam funds have backed Kinara Capital’s fresh equity round of US$50 million which will be for expansion of products and services to meet the rapidly increasing MSME credit demand in India.
Chicago-based Nuveen, a leading global investment manager with over US$1.3 trillion of assets under management, and Amsterdam’s Triple Jump, a Dutch impact-focused investment manager advising the ASN Microkredietfonds participated in the round, said Kinara on 19 Apr 2022.
This new equity investment will lead to Kinara’s expansion of products and services to meet the rapidly increasing MSME credit demand in India. Kinara Capital aims to grow by 500% by 2025 with plans to disburse US$1 billion of MSME business loans in the next three years.
This round of equity financing for Kinara Capital comes from Nuveen’s Global Impact Fund which focuses on transformative companies’ impact value chains for low-income consumers and from the ASN Microkredietfonds, a listed and regulated Dutch microfinance fund advised by Triple Jump.
With this equity round, Kinara Capital gains two new members on its Board of Directors with Nuveen’s Managing Director and Co-Head of Private Equity Impact, Rekha Unnithan, and Nuveen’s Director of Private Equity Impact, Stephen Lee.
As shareholders, Nuveen and Triple Jump will support Kinara’s continued growth and the continued development of their best-in-class ESG and impact management system.
Kinara offers both a fully digital process with its myKinara app and doorstep customer service with 110+ branches serving small business entrepreneurs across 90+ cities in India. With the advanced use of AI/ML, the company’s vernacular-friendly myKinara app can take MSME applicants from loan decision-to-disbursement within 24-hours.
More than 300 sub-sectors across Manufacturing, Trading, and Services MSME sectors can avail Kinara’s collateral-free business loans in the range of US$1,000-US$30,000.
Hardika Shah, Founder & CEO, Kinara Capital, said, “We at Kinara Capital are immensely thrilled with the dual investment from Nuveen and Triple Jump who are uniting to support small business entrepreneurs in India, the world’s fastest-growing major economy.
“This is a true attestation of our sustainable business model and the vast MSME market opportunity ahead of us. 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.”
Unnithan added, “Nuveen seeks out innovative companies who are transforming economies and solving real-world problems.
“Kinara Capital and its leadership are par excellence in how they have disrupted small business lending in India. Taking a digital-first approach without compromising on human customer service, Kinara has outclassed others with its ability to address the pain points of MSMEs in India.
“With a decade worth of proprietary data, Kinara has perfected its qualification processes and turnaround time. We at Nuveen are proud to invest fully in Kinara Capital, and together, we will turn to the next chapter of growth.”
Orsolya Farkas, Equity Manager, Triple Jump, commented, “Triple Jump is proud to invest in Kinara Capital which is leading with a sustainable business model and creating a systemic shift in how small business entrepreneurs should be considered and served, especially women entrepreneurs.
“Impact is core to Kinara’s business and the company has never wavered from its mission of financial inclusion. We are impressed by Kinara’s genuine commitment towards gender parity both within its organization by leading with a women-majority management team and with its HerVikas program for women entrepreneurs.”
To date, Kinara Capital has disbursed US$400 million across 75,000+ collateral-free business loans enabling vast financial inclusion of the underserved small business entrepreneurs in India.
Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors
Triple Jump is a Dutch impact-focused investment manager that provides meaningful and responsible investment opportunities in emerging markets.
Kinara Capital is a fast-growing fintech propelling financial inclusion of small business entrepreneurs in India. Leading with a women-majority management team, the company is globally recognized for disrupting MSME financing. fiinews.com
