Dvara Kshetriya Gramin Financial Services Private Limited
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Established in 2008, Dvara KGFS is a non-deposit taking systemically important NBFC (regulatory category NBFC-ND-SI) headquartered in Chennai, India. The company’s mission is to maximise the financial wellbeing of individuals and small enterprises in India by providing access to financial services. Dvara KGFS uses a customer-centric, technology-enabled business strategy to provide financial products to women and microenterprises in rural /semi-rural areas. It has a network of 378 branches in 107 districts spanning across 10 states in India and targets low-income and underserved rural/semi-rural populations.
What is our funding objective?
FMO’s funding of USD 20mln, will be used for the growth of Dvara’s microfinance portfolio towards female or young microentrepreneurs, women-owned micro enterprises, supporting the themes of gender and inclusive finance, and climate resilient agriculture. The investment will support Dvara KGFS to grow and optimize its performance, while also making available customized technical assistance in strategic areas. A part of the loan will also be earmarked for green qualifying products.
Why do we fund this investment?
FMO focuses on reducing inequalities and promoting sustainable economic growth in emerging markets. Through Dvara KGFS, FMO can contribute to reducing inequalities, climate resilience and women empowerment in underserved regions in India. By offering longer term funding FMO has additionality and can provide stability and diversity to the company’s funding profile.
What is the Environmental and Social categorization rationale?
Dvara KGFS is categorized as an E&S C-risk client. FMO analyses risks from different perspectives and assessments. In the case of microfinance investments, the E&S classification is typically low because the exposure generally is limited to retail and micro-entrepreneurs. The risks that might come with microfinance investments, such as over-indebtedness, transparency of interest rates, responsible pricing, is covered by FMO in other assessments such as Client Protection Principles (CPPs). Dvara does not have exposure to activities on FMO’s exclusion list or IFC-PS triggered transactions. It also has a complaint mechanism in place for both staff and clients and reports transparently on E&S related issues.
More investments
| Date | Total FMO financing |
|---|---|
| 12/15/2023 | USD 7.00 MLN |
- Website customer/investment
- https://www.dvarakgfs.com/
- Region
- Asia
- Country
- India
- Sector
- Financial Institutions
- Publication date
- 11/17/2023
- Effective date
- 12/15/2023
- Total FMO financing
- USD 13.00 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C