Kinara Capital: A women-led fintech startup driving last-mile financial inclusion in India
India has been taking incremental steps over the past decades to bring households from remote and underserved communities within the formal banking sector. According to the Reserve Bank of India’s FI-Index, which measures the extent of financial inclusion across the country, there has been a notable improvement in the inclusion index over the past year, rising from 60.1 in March 2023 to 64.2 in March 2024. Alongside government efforts, fintech companies have emerged as a catalyst for driving financial inclusion in India by breaking down some of the traditional barriers to access.
Fintech companies are also driving financial freedom by leveraging technological innovations. They are providing alternative credit scoring models, introducing digital payment platforms like mobile wallets and apps, conducting financial literacy webinars and workshops, and developing tailored financial solutions that empower users to manage their finances. The growing fintech ecosystem in India is promising and can play a significant role in bridging financial and gender gaps. Financial inclusion can have multiplier effects on the economy, and contribute to the progress of several sustainable development goals.
Kinara Capital is among the fintech startups driving this effort in India. A women-led startup, Kinara Capital offers collateral-free business loans to medium and small-scale enterprises (MSMEs) through its online app myKinara. MSMEs owners can easily check their eligibility in the app or the Kinara Capital website in under 1-minute. Once the submitted documents are verified through its digital portal, MSME owners can access loans within 24 hours of registration. Since its launch in 2011, Kinara Capital has supported more than 82,000 MSMEs across various sectors, including manufacturing, construction, and building materials.
Digitization and technology integration have propelled the startup’s growth notably over the years of its operations. Kinara Capital utilizes SignDesk, an AI-powered document automation tool, to streamline its processes and revamp loan cycles. It uses an automated decision-making system to determine loan approvals, the amount, time frame, and risk-adjusted interest rates. Reminders to customers are sent via calls, WhatsApp messages in local languages, and SMS, all of which are automated. Such data-led and tech-enabled processes, combined with its in-person services from 125+ branches, have helped Kinara Capital disburse business loans much faster and more efficiently than traditional lenders in the MSMEs ecosystem.
Kinara Capital is playing a critical role in the fintech ecosystem by driving last-mile financial inclusion of small business entrepreneurs in India. Its tech-driven approach has also significantly helped demonstrate scalability and profitability in its MSMEs lending model.
