Kinara Capital, a social impact fintech driving financial inclusion of India’s small business entrepreneurs, today announced securing euro 8 million (Rs 70 crores) from Invest in Visions GmbH (IIV), pioneers of microfinance investments in Germany.
Agents for Impact, a sustainability connector of investors and social impact organizations, arranged this transaction for Invest in Visions and managed all commercial and legal aspects of this transaction for Invest in Visions from start to finish.
Classified as an ESG Impact Fund by the European Union, Kinara Capital will further IIV’s Microfinance fund’s mandate of enabling credit access to small businesses.
Invest in Visions GmbH established the first microfinance fund in Germany and since has expanded to specializing in SME financing, renewables and education. IIV seeks to invest in ethical organizations that can demonstrate sustainable profitability and social impact. AFI plays the crucial role of advising IIV on loan transactions wherein it, inter-alia, conducts verification and plausibility check of investee organizations based on the German Federal Financial Supervisory Authority’s recommendation to assess sustainability risk and its ability to deliver measurable social impact.
“Kinara Capital and Invest in Visions GmbH are joining hands to enable financial inclusion of even more MSMEs in India. Dedicated support from Agents for Impact to execute this transaction underscores our transparent processes and our focus on achieving measurable social impact,” said Hardika Shah, Founder & CEO, Kinara Capital.
“IIV is pleased to partner with innovative leader Kinara Capital that is creating possibilities for the underserved small businesses in India,” said Edda Schröder, Founder and Managing Director, Invest in Visions GmbH (IIV).
Dr. Andrij Fetsun, CEO of Agents for Impact (AFI), said, "Our goal is to perfectly match the needs and requirements of ESG investors and social impact organizations.”
Partnership between Kinara Capital, Invest in Visions GmbH (IIV), and Agents for Impact (AFI) to advance financial inclusion will meet multiple United Nations Sustainable Development Goals (UN SDGs), with primary UN SDGs 5, 8, 10 and secondary UN SDGs 1, 2, 3, 4, 9.
