Dvara KGFS funding

Non-banking financial company Dvara KGFS on Monday announced that it has raised 8 million euros ($9.52 million) from social impact funds Invest In Visions (Germany) and Darlehnskasse Münster (Luxembourg).

The funds were raised via external commercial borrowings (ECBs), said Dvara in a statement.

Joby CO, chief executive officer of Dvara, said that the company plans to utilize the funds to lend to microfinance and micro-enterprise customers such as retail shops, small dairies, and Agri entrepreneurs in rural parts of India.

The ECBs will also help to boost to the company’s fundraising plan from overseas lenders in the coming financial year 2021-22, said Dvara finance chief Vijayakumar G.

Dvara, established in 2008, says it offers financial services in rural India via its technology-backed wealth management approach. It was a wholly-owned unit of IFMR Rural Channel Services Pvt. Ltd. In March 2019, it formed a separate company.

Dvara has its operations in Karnataka, Chhattisgarh, Tamil Nadu, Uttarakhand, Odisha, and Jharkhand. It has 308 rural branches catering to more than one million rural customers.

In 2019, Dvara acquired Rs 97 crore ($14 million) in a Series E round led by Stakeboat Capital. LeapFrog Investments and parent Dvara Trust also participated in the round.

Invest In Visions, incorporated in 2006 by Edda Schröder, is targeted at segments including sustainable agriculture, social enterprises, and social impact lending. It has made investments in India.

Last year, it offered debt to non-banking lender and financial technology firm Aye Finance.

In 2019, it invested in Microlender ASA International.