Dvara KGFS Secures $14.4 Million Funding to Empower Rural Women in India

Preeti Bali / 12:53 pm / March 22, 2024

Dvara Kshetriya Gramin Financials (Dvara KGFS), a rural-focused non-banking financial company (NBFC) in India, has secured $14.4 million through listed non-convertible debentures (NCDs). This investment signifies a significant step forward for the organization’s mission to empower women and promote sustainable development in remote regions.

Investing in Women, Investing in the Future

The funding was facilitated by the Impact Investment Exchange (IIX) as part of their $100 million Women’s Livelihood Bond 6 (WLB6) initiative. WLB6 is recognized as the largest Orange and Sustainability labeled Bond in the market, highlighting Dvara KGFS’s commitment to both gender equity and climate action.

Orange Bonds, with their unique focus on these critical areas, align with the Orange Movement’s goal of mobilizing $10 billion by 2030 to empower 100 million women, girls, and gender minorities. Through its participation in WLB6, Dvara KGFS aims to positively impact over 87,900 women and girls over the four-year lifespan of the bond, contributing to the advancement of multiple UN Sustainable Development Goals (SDGs) such as Gender Equality (SDG 5) and Climate Action (SDG 13).

Empowering Women Through Financial Inclusion

The newly acquired funds will be directed towards disbursing loans specifically designed to benefit women borrowers. These loans will focus on Joint Liability Groups (JLGs), Micro Enterprise Loans (MELs), and Water, Sanitation, and Hygiene (WASH) projects. In addition to fostering financial inclusion for women, Dvara KGFS remains committed to operational excellence and creating long-term value for all stakeholders involved.

Dvara KGFS on the Rise

With over 400 branches in ten Indian states, including Tamil Nadu, Uttarakhand, Uttar Pradesh, and Bihar, Dvara KGFS has grown significantly. The company recently surpassed Rs 2,000 crore in Assets Under Management (AUM) and achieved a significant 33% growth in scale, reaching Rs 380.5 crore in FY23. Notably, Dvara KGFS has transitioned to profitability, recording Rs 12.6 crore in profits compared to a loss in the previous fiscal year.

“Dvara KGFS is a mission-driven financial institution dedicated to empowering women through gender-inclusive financial solutions, particularly in rural India,” stated LVLN Murty, MD & CEO of Dvara KGFS.”We are excited to get this subsidizing from IIX, which will permit us to additional our endeavors in advancement and item improvement, at last driving incentive for both our clients and partners.”

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