Dvara Kshetriya Gramin Financials (Dvara KGFS), a non-banking financial company (NBFC) serving remote rural regions of India, has raised $10 million in debt from BlueOrchard Microfinance Fund. This funding will support the company’s expansion plans and bolster its mission to empower underserved communities across the country.
This latest round of financing follows a previous capital raise in March 2023, when Dvara KGFS secured $14.4 million through listed non-convertible debentures (NCDs) from Impact Investment Exchange (IIX).
Under the leadership of LVLN Murty, Dvara KGFS is dedicated to enhancing the well-being of individuals and nano and micro-businesses in rural India. The company employs an omni-channel approach, providing a comprehensive range of loans and third-party products to meet the diverse financial needs of its clients.
With over 400 branches spread across 10 states including Tamil Nadu, Uttarakhand, Uttar Pradesh, Chhattisgarh, Jharkhand, and Bihar, Dvara KGFS has significantly expanded its reach. The company reported a 33% growth in scale, achieving Rs 380.5 crore in FY23 compared to Rs 285.9 crore in FY22. Additionally, it turned profitable with a net profit of Rs 12.6 crore, reversing the losses from the previous fiscal year.
In February 2023, Dvara KGFS also surpassed Rs 2,000 crore in Assets Under Management (AUM), marking a significant milestone in its growth trajectory.
This latest infusion of funds from BlueOrchard Microfinance Fund is expected to further enhance Dvara KGFS’s capabilities in delivering financial services to rural areas, continuing its focus on financial inclusion and economic empowerment.
