Dvara KGFS, a NBFC operating in deep rural pockets of India, announced that they have raised 8 Million Euros from leading European social impact funds, Invest In Visions, Germany (IIV) and Darlehenskasse Muenster, Luxembourg (DKM) as External Commercial Borrowings (ECB).
The company intends to deploy the ECB proceeds for their onward lending program targeted to support their microfinance as well as small business customers in more than 9000 deep rural villages with little or no access to formal means of credit. The company has designed these micro loans to suit the dynamic requirements of their customers and potentially enhance their means of livelihood.
Commenting on the fund raiser, Joby C O, Chief Executive Officer, Dvara KGFS, said, “We are happy that through Agents for Impact (AFI), we have been able to raise 8 Million Euros as ECB from globally renowned impact funds – Invest In Visions (IIV) and their partner fund Darlehenskasse Muenster (DKM. This helps us to diversify our fund raising effort to foreign Institutional investors(FII) and DFIs. The funds will be utilised to fund our microfinance customers and Micro Enterprise customers in the rural parts of India. There are a variety of small business that we fund in rural India which includes retail shops, small dairies, agri entrepreneurs and this would help customers to restart their businesses, post covid. Our wealth management approach helps these customers to enhance their financial well-being through a variety of products.”
Mr Vijayakumar G, Chief Financial Officer, Dvara KGFS further commented saying, “Coming from pioneering social impact investors, the ECB is a testimony of the successful impact of the deep /dense business model employed by Dvara KGFS to bring about financial inclusion in the rural geographies it operates in. The ECB will also provide great fillip to our fund raise plan from overseas lenders in the coming financial year.”
On this transaction, Dr. Andrij Fetsun, CEO, Agents from Impact (AFI) commented, “AFI’s goal is to bring in new investment opportunities from India and around the globe to receive funding from Invest in Visions GmbH and this deal is an evidence to our commitment and determination to achieve such goal. I am excited to see the positive impact and effect that this loan will have on micro enterprises and entrepreneurs in deep rural and remote parts of India, which are rebuilding itself in light of the COVID pandemic.”