India NBFC raises $14m Series E round

Existing investor Leapfrog Investments and Dvara Trust also took part. The parent company is the largest shareholder with a 45% stake as of March 2019, while Leapfrog holds 22% and Accion International has 33%. The new capital will be used to accelerate Dvara KGFS’ geographical expansion and introduce new internet-based services for its rural clients.

Dvara KGFS launched in 2008 as Pudhuaaru Financial Services, a division of IFMR Holdings, and was acquired by Dvara earlier this year. The NBFC offers a range of financial products to households and small businesses in remote rural areas, and currently operates in five states. According to a report by India’s Information & Credit Rating Agency, Dvara KGFS’ total assets under management stood around INR7.7 billion as of April 2019.

“It is a pleasure to partner a pedigreed institution like Dvara KGFS known for its pioneering efforts in rural finance,” said Vinay Subramanian, investment director at Stakeboat. “With the exponential growth of mobile penetration in India, Dvara KGFS is well poised to serve the rural under-banked, offering seamless customer service on par with their urban counterparts, through increasingly digital means.”

Stakeboat was founded in 2016 by G.S.K. Velu, a former promoter of medical diagnostic chain Metropolis Healthcare. The firm seeks Series B investment opportunities in Indian companies with established cash flows and proven business models

Stakeboat is currently raising its first fund, with a target of $100 million. Previous investments include semiconductor design company Sankalp and dentistry device manufacturer Leixir Dental Group.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Financials
• Expansion
• India
• LeapFrog Investments
• Financial Services
• NBFCs
• Growth capital