Dvara KGFS raises $10 million in ECB

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Dhavara KGFS, based in Chennai Non-bank financing company Focusing on rural lending, it has raised $10 million in debt under the Offshore Business Loans (ECBs). Funding comes from Netherlands-based Triple Jump Financial Inclusion Resilience Fund BV and Switzerland-based influencer investor, BlueOrchard Finance.

In a press release, the company said the Triple Jump Financial Inclusion Resilience Fund has provided $5 million in subordinated debt, while BlueOrchard has provided another $5 million in secured debt. Both funds are managed by the European Central Bank.

The company said the fundraiser will be instrumental in increasing capital adequacy and accelerating growth plans in FY24.

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Dvara KGFS, a Systematic NBFC under the Dvara Group, is present in Tamil Nadu, Uttarakhand, Karnataka, Chhattisgarh, Jharkhand and Odisha and spread across 378 branches with over 1.1 million registered customers.

LVLN Murty, Managing Director and CEO of Dvara KGFS, said the fundraising will enable the company to expand its reach and impact and drive financial inclusion in rural areas.

Shilpa Pater, Chief Financial Officer of Dvara KGFS, said the fundraising has not only diversified the lender profile but also strengthened the company’s presence in the external debt market.