Dvara KGFS raises funds from foreign institutional investors

The fund infusion is expected to help Dvara KGFS in its growth plans and expand its outreach. The company is pivoting towards enhancing financial access to Micro Entrepreneurs in the inclusion space.

NBFC Dvara Kshetriya Gramin Financial Services (Dvara KGFS) has raised €3 million from Sparkassen International Development Trust GmbH (SIDT) and $5 million through issuance of Subordinated Bonds to FMO Entrepreneurial Development Bank.

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.

Fund infusion

The fund infusion is expected to help Dvara KGFS in its growth plans and expand its outreach. The company is pivoting towards enhancing financial access to Micro Entrepreneurs in the inclusion space.

“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,” LVLN Murty, Managing Director and CEO, Dvara KGFS, said in a statement.

Dvara KGFS lends to individuals and nano and micro-businesses in India. It has a presence in 11 states including Tamil Nadu, Uttarakhand, Uttar Pradesh, Karnataka, Chhattisgarh, Jharkhand, Punjab, Bihar, Haryana, Odisha and Andhra  Pradesh.

Published on May 22, 2025