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Kinara Capital Reports Ninth Consecutive Year of Profitability, Achieving Record Growth in FY24

Kinara Capital, a leading fintech driving MSME financial inclusion in India, has announced its financial year 2024 results, marking the organization’s ninth consecutive year of profitability.

Closing the fiscal year with a profit after tax (PAT) of INR 62 crores, a remarkable 51% year-over-year (YoY) increase, highlights the success of Kinara’s unique business model, blending technology with omnichannel customer service. In FY24, Kinara Capital achieved a 47% YoY growth in revenue, totaling INR 723 crores, while operational expenses (OpEx) as a percentage of the assets under management (AUM) decreased by 32%, further enhancing annual profits. The company’s loan book expanded by 26% YoY, reaching INR 3,142 crores in year-end assets under management (AUM).

Specializing in providing formal credit without property collateral to support India’s small business entrepreneurs, Kinara Capital remains dedicated to the financial inclusion of the micro-small-medium-enterprise (MSME) sector. The fintech NBFC disbursed over 26,343 new business loans in the last fiscal year, leading to a 35% YoY increase in the number of loans disbursed. Additionally, Kinara saw a 30% YoY increase in its active MSME customer base and a notable 42% YoY increase in its active customer base of women-owned MSMEs.

Commenting on the achievement, Hardika Shah, Founder & CEO of Kinara Capital, stated, “Our resilient business model and unwavering commitment to financial inclusion have led to nearly a decade of growth and consecutive profitability. In FY24, beyond our high-touch and high-tech model, we expanded our reach to MSMEs in other states through embedded finance solutions partnerships. Looking ahead, we are excited to support thousands more MSMEs, doubling our AUM by FY26 and surpassing the USD $100 million mark in revenues in FY25.”

In FY24, Kinara Capital disbursed over INR 100 crores in its first year of partnerships, indicating significant growth opportunities ahead. With 133 branches covering regions representing approximately 70% of India’s manufacturing output, the company plans to further penetrate existing geographies through its branch-led model and reach new MSMEs via its partnerships model. Additionally, Kinara will enhance its technology capabilities through strategic long-term investment in its in-house tech, creating a set of customizable APIs for Lending-as-a-Service (LaaS) to integrate with more partners in the future.

Since its inception, Kinara Capital has cumulatively disbursed over INR 6,700+ crores across over 1.2 lakh collateral-free business loans, leading to job creation and income generation in local economies. With an AUM growth at a CAGR of 51% over the past 3 years, Kinara Capital continues to thrive in the landscape of MSME financial inclusion.

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