Kinara gets capital from Gaja, focus on MSME lending
, ET Bureau|
Updated: Oct 13, 2017, 09.57 AM IST
NEW DELHI: Mid-stage private equity firm Gaja Capital has led a Rs 96-crore round of funding in Visage Holdings and Finance, which owns and operates nonbanking finance company (NBFC) Kinara Capital, striking its second deal in the broader financial services sector in the process.
The transaction also saw participation from a second new investor, Spanish impact investment firm Gawa Capital, and Kinara's existing backers, Michael and Susan Dell Foundation, besides Unitus Impact Fund. It will also see BSE-listed NBFC major Shriram City Union Finance exit its position in the six year-old company.
As per the terms of the deal, the equity financing round will see Kinara receive about Rs 70 crore as primary funding, with the remaining going to Shriram City Union Finance, which had initially invested in the NBFC in 2015.
Gopal Jain, managing partner of Gaja Capital, confirmed the developments, but declined to disclose the exact stake picked up by the investors, or the valuation of the NBFC, post the closure of the round.
"Kinara Capital is one of the fastest-growing NBFCs in India that is catering to, what has been described as the 'missing middle,' which are the micro and small manufacturing enterprises. We look forward to partnering them on their journey going forward," Jain told ET.
Bengaluru-based Kinara provides non-collateralised loans, ranging between Rs 1 lakh and 15 lakh, to MSMEs, with a focus on the manufacturing sector.
The transaction also saw participation from a second new investor, Spanish impact investment firm Gawa Capital, and Kinara's existing backers, Michael and Susan Dell Foundation, besides Unitus Impact Fund. It will also see BSE-listed NBFC major Shriram City Union Finance exit its position in the six year-old company.
As per the terms of the deal, the equity financing round will see Kinara receive about Rs 70 crore as primary funding, with the remaining going to Shriram City Union Finance, which had initially invested in the NBFC in 2015.
Gopal Jain, managing partner of Gaja Capital, confirmed the developments, but declined to disclose the exact stake picked up by the investors, or the valuation of the NBFC, post the closure of the round. "Kinara Capital is one of the fastest-growing NBFCs in India that is catering to, what has been described as the 'missing middle,' which are the micro and small manufacturing enterprises. We look forward to partnering them on their journey going forward," Jain told ET.
Bengaluru-based Kinara provides non-collateralised loans, ranging between Rs 1 lakh and 15 lakh, to MSMEs, with a focus on the manufacturing sector.
