Dvara Kshetriya Gramin Financials (KGFS), a non-banking financial company (NBFC) operating in the remote rural areas of India, has recently bolstered its financial standing by raising $14.4 million through listed non-convertible debentures (NCDs) from Impact Investment Exchange (IIX).
This capital infusion comes from Dvara KGFS’s recent success in securing $27 million in debt capital from Dutch companies FMO and Enabling Capital, which demonstrates growing investor confidence in the organization’s mission and operational effectiveness.
The funds raised are part of the $100 million Women’s Livelihood Bond 6 (WLB6) facilitated by IIX, marking a significant step towards supporting women, girls, and gender minorities in underserved communities. Dvara KGFS aims to leverage these resources to impact 87,900 individuals over the tenure of the WLB6, aligning with broader initiatives to empower 100 million women, girls, and gender minorities by 2030.
Under the leadership of LVLN Murty, Dvara KGFS has distinguished itself by focusing on the holistic well-being of individuals and nano/micro-businesses in rural India. With a presence spanning over 400 branches across ten states, including Tamil Nadu, Uttarakhand, Uttar Pradesh, Chhattisgarh, Jharkhand, and Bihar, the organization has been instrumental in providing financial access and support to marginalized communities.
The recent financial milestones achieved by Dvara KGFS underscore its commitment to sustainable growth and social impact. In February, the company surpassed Rs 2,000 crore in Assets Under Management (AMU), reflecting its expanding reach and influence. Furthermore, the firm recorded remarkable growth, with a 33% increase in scale to Rs 380.5 crore in FY23 compared to Rs 285.9 crore in FY22. Notably, Dvara KGFS also achieved profitability during the fiscal year, reporting Rs 12.6 crore in profits after facing losses in the previous financial period.
As Dvara KGFS continues to chart its course towards inclusive prosperity, its strategic partnerships and financial achievements exemplify the transformative potential of ethical finance in driving socio-economic development in rural India.
