Dvara Kshetriya Gramin Financials (KGFS), a leading Non-Banking Financial Company (NBFC), has secured a substantial debt capital infusion of $14.4 million. The funding, facilitated through listed non-convertible debentures (NCDs), underscores Dvara KGFS’s steadfast commitment to driving positive change and fostering economic resilience in underserved communities.
The infusion of capital represents a crucial milestone in Dvara KGFS’s mission to empower marginalized demographics and catalyze socio-economic progress in remote rural regions. Impact Investment Exchange (IIX) emerges as a pivotal contributor to this endeavor, extending support through its $100 million Women’s Livelihood Bond 6 (WLB6), a testament to the growing recognition of the transformative potential of gender-inclusive financial interventions.
Building upon its recent success in securing $27 million in debt capital from FMO, a Dutch development bank, and Enabling Capital, Dvara KGFS continues to forge strategic partnerships aimed at amplifying its impact and extending its reach. This concerted effort aligns with a broader movement aimed at mobilizing $10 billion to empower 100 million women, girls, and gender minorities by 2030, as articulated by Dvara KGFS in a recent press release.
The infusion of funds is poised to fuel Dvara KGFS’s ambitious agenda, which includes targeting the empowerment of 87,900 women and girls over the four-year tenure of the WLB6. Leveraging the IIX Values platform for impact measurement, the company is committed to ensuring accountability and transparency in its social initiatives, thereby maximizing the effectiveness of its interventions.
Under the visionary leadership of LVLN Murty, Dvara KGFS has emerged as a trailblazer in the realm of rural financial services, prioritizing the holistic well-being of individuals and nano and micro-businesses in remote Indian communities. With a network encompassing over 400 branches across 10 states, including Tamil Nadu, Uttarakhand, Uttar Pradesh, Chhattisgarh, Jharkhand, and Bihar, the NBFC is strategically positioned to address the unique financial needs of rural populations.
The recent achievement of surpassing Rs 2,000 crore in Assets Under Management (AUM) stands as a testament to Dvara KGFS’s growing influence and operational prowess. This significant milestone underscores the company’s robust growth trajectory and its unwavering commitment to expanding financial access and fostering economic resilience in rural hinterlands.
The financial year 2022-23 witnessed remarkable strides for Dvara KGFS, marked by a commendable 33% growth in scale, with total assets reaching Rs 380.5 crore compared to Rs 285.9 crore in the preceding fiscal year. Notably, the company achieved profitability during this period, recording profits amounting to Rs 12.6 crore, signaling a notable turnaround from the losses incurred in the previous fiscal year.
The infusion of $14.4 million in debt capital represents a strategic move by Dvara KGFS to fortify its operational capabilities and expand its suite of financial products and services tailored to the unique needs of rural communities. By leveraging innovative financing mechanisms and forging strategic partnerships, the NBFC is poised to catalyze transformative change, empowering communities and fostering sustainable prosperity across the hinterlands.
As Dvara KGFS embarks on this new phase of growth and expansion, its commitment to driving positive change in rural India remains unwavering. With a robust operational framework in place and a clear vision for the future, the NBFC is well-positioned to navigate the evolving landscape of rural finance and drive tangible progress towards a more inclusive and equitable future for all.
