Dvara Kshetriya Gramin Financial Services (Dvara KGFS), a NBFC that operates in remote rural areas of India, has raised €3 million from Sparkassen International Development Trust GmbH (SIDT) and $5 million through the issuance of Subordinated Bonds to FMO Entrepreneurial Development Bank.
The fresh funds raised will be used to strengthen its capital base and expand its outreach.
Incorporated in August 2008 by Bindu Ananth and Samir Shah, Dvara KGFS provides an array of loans and third-party products tailored to meet its customers’ diverse financial needs through an omnichannel approach. Dvara KGFS focuses on providing financial services to low-income households and small businesses.
SIDT is part of the German Sparkassen Group, considered the largest financial group in Europe. SIDT launches its first equity participation in the Indian financial inclusion space with this investment in Dvara KGFS.
FMO Entrepreneurial Development Bank is a public-private development bank supervised by the Dutch Central Bank (DNB). FMO’s first investment in Dvara KGFS came in FY24.
LVLN Murty, Managing Director and CEO, Dvara KGFS, said, “At a time when the inclusion space in India is witnessing unprecedented challenges, this fund raise is a testimony of the resilience, agility and scalability of the Dvara KGFS business model and lending infrastructure. With the strong backing of our highly reputed investors and lenders, we are confident in our ability to deepen our impact in providing finance to the underserved and reinforce our mission to enable financial well-being at the last mile by opening 50 branches in this financial year that would originate Enterprise Loans exclusively, thereby taking the total branch strength to 477 by the end of this fiscal This fund raise not only fortifies our capital base but also validates the impact-driven, resilient path we have charted in the financial inclusion ecosystem. The company is investing in digital transformation using artificial intelligence for enhancing operational efficiency and customer experience.”
Shilpa Bhatter, CFO, Dvara KGFS, said, “We have embodied highest standards of corporate governance and financial discipline in our organization. This infusion of capital reinforces our commitment to ethical and prudent portfolio management and further fortify our lending infrastructure by investing more meaningfully into state-of-the-art technology and data analytics capabilities, thereby strengthening our core operations while continuing to deliver measurable social and financial outcomes.”
Carsten Steffan from Sparkassen International Development Trust GmbH said, “We are pleased to support Dvara KGFS in its mission to improve financial access in rural India. As part of the Sparkassen-Finanzgruppe, our focus is on enabling responsible and inclusive financial services in emerging markets. This investment reflects our commitment to creating sustainable impact by supporting institutions that demonstrate deep local insight, strong governance, and scalable models. We look forward to a long-term collaboration that contributes to financial empowerment and community development in India.”
