Dvara KGFS secures $10 million debt financing to advance rural financial inclusion

Bhubaneswar, May 24, 2024 (TBB Bureau): Dvara Kshetriya Gramin Financials Pvt Ltd (Dvara KGFS), a leading financial services company committed to enhancing financial inclusion in rural India, has successfully secured $10 million in debt financing. The funding, obtained from BlueOrchard Microfinance Fund, a global impact investor, will support Dvara KGFS’s expansion initiatives and its mission to empower underserved communities across India.

The debt was raised through the issuance of listed non-convertible foreign currency bonds under the External Commercial Borrowings route. These bonds are listed on the India International Exchange in GIFT City, Gujarat, India’s premier smart city and International Financial Services Centre (IFSC). This strategic move enables Dvara KGFS to access foreign debt while enhancing its international visibility.

LVLN Murty, Managing Director & CEO of Dvara KGFS, expressed his enthusiasm, stating, “We are thrilled to kickstart this promising year with the successful debt raise from BlueOrchard. As we target a 40% growth in the current financial year, diversifying our funding sources is crucial. Strengthening partnerships with international impact investors like BlueOrchard will facilitate our goal of extending financial services to more underserved communities.”

Dvara KGFS employs an omni-channel approach, offering a comprehensive range of loans and third-party products tailored to the diverse financial needs of its customers. With a network of over 400 branches across 10 Indian states, the company is well-positioned for sustainable and profitable growth.

Shilpa Bhatter, CFO of Dvara KGFS, expressed gratitude for BlueOrchard’s continued support, highlighting the company’s commitment to corporate governance and impactful business practices. “By listing our debt on the India International Exchange, we gain access to the global debt market, securing sustainable financing at lower costs. This enables us to maximize our impact on rural communities and drive meaningful change,” she added.