Kinara Capital Renews its Commitment to Empowering Women Entrepreneurs with Financing of Rs. 500 Crores through the HerVikas Loan Program

April 3, 2024
Updated on

Since the inception of Kinara Capital, driving the financial inclusion and growth of MSMEs has been our central focus. However, among these, women MSME entrepreneurs have stood out as having immense transformative potential. Understanding this, Kinara made concerted efforts to extend our financing support to them from the very beginning. This led Kinara to launch our HerVikas program in 2020, aiming to expand the ambit of our support and empowerment to an increasingly expanding section of women entrepreneurs. Now, as the company celebrates the 5th anniversary of HerVikas, the impact it has made is palpable, reshaping the landscape of financial inclusion and empowering women-owned MSME startups across India.

Since the rollout of the HerVikas program, it has been a transformational force supporting 5,800 women MSME entrepreneurs across 100+ cities in India. The further impact of HerVikas program has led to over 31,000+ jobs supported in local economies, of which over 5,500+ are new jobs created by women entrepreneurs. Overall, the support through HerVikas has led to a cumulative post-loan net income generation of around INR 187 crores with women entrepreneurs experiencing an average of 16% increase in their proprietor salary from their businesses. Now the company has renewed its commitment to HerVikas with a further infusion of funds with the aim of supporting many more women entrepreneurs. Let’s take a look at what the program has achieved so far and what lies ahead.

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Launching a Program for Women MSME Entrepreneurs

Since its inception in 2020, HerVikas has been a catalyst for change, nurturing the aspirations of women entrepreneurs across India. Kinara Capital has remained steadfast in its commitment to fostering growth and inclusion, particularly within the realm of MSMEs. With a profound understanding of the transformative potential inherent in women-led businesses, Kinara embarked on a journey to redefine financial empowerment through the HerVikas program.

Recognizing the unique challenges faced by women entrepreneurs in accessing adequate financing and resources, HerVikas was conceived as a tailored solution to address these barriers head-on. It symbolizes more than just a financial initiative; it represents a paradigm shift in the way women entrepreneurs are perceived and supported. By extending personalized financial support and guidance, HerVikas seeks to nurture the entrepreneurial aspirations of women across diverse sectors and geographies. As a catalyst for change, HerVikas embodies the ethos of empowerment, resilience, and inclusivity. It is a testament to Kinara Capital’s unwavering dedication to leveling the playing field and creating opportunities for all. Through HerVikas, Kinara provides financial assistance to women MSME entrepreneurs, and fosters a supportive ecosystem where women can thrive, innovate, and lead the way towards a more equitable future.

The Remarkable Impact of HerVikas

The recent release of Kinara’s MSME Insights report sheds light on the remarkable strides made by women-owned MSMEs, underlining the pivotal role played by initiatives like HerVikas. Spanning 6 states and analyzing data from over 44,000 MSMEs, the report unveils compelling statistics showcasing the impact of women entrepreneurs in driving economic growth and fostering employment opportunities.

Women-owned MSMEs emerge as champions of female employment, hiring 11% more women than their male-owned counterparts. This bolsters local economies and underscores the inclusive ethos embedded within these enterprises. The report also highlights the superior cost optimization and revenue generation capabilities exhibited by women-owned MSMEs, attributed in part to their access to formal credit. Through the HerVikas program, women entrepreneurs experienced a 12% rise in organizational revenue and a remarkable 19% increase in monthly net income, surpassing the performance of male-owned MSMEs. With a lower default rate on loan repayments compared to their male counterparts, women-owned MSMEs showcase a commendable level of diligence and reliability and deserve all the support they can get.

Expanding the Ambit of Inclusion

As Kinara Capital marked the 5th anniversary of the launch of HerVikas, the company reaffirmed its commitment to empowering women entrepreneurs with renewed vigor. Kinara announced the infusion of another Rs. 500 crore fund and expanded benefits for HerVikas, signifying a major milestone in this journey towards inclusivity and empowerment.

The new benefits aim to encourage more women-owned MSME startups to experience the gains of early access to formal credit by providing them with catalytic capital. HerVikas will automatically provide qualifying women entrepreneurs with 1% interest rate discount on collateral-free business loans, a 60-day repayment holiday, and a 50% reduction in loan processing fees. In addition to providing bias-free credit decisioning with AI/ML-powered myKinara App, HerVikas will also be extended to newly registered MSME startups in the Manufacturing and Trading sectors who may qualify within one month of its business registration. 

Kinara Capital has already disbursed over INR 700 crores to date under the HerVikas program in collateral-free business loans. With the additional allocation of INR 500 crores, HerVikas disbursements will exceed INR 1,200+ crores by FY25.

HerVikas is aimed at empowering more women entrepreneurs to pursue establishing their business goals with lowered costs and without immediate loan repayment concerns. The success story of HerVikas is not just about numbers; it’s about the people behind those numbers—the resilient, determined, and empowered women entrepreneurs who dare to dream and defy the odds. By easing access to credit, and enhancing it further with reduced charges and delayed repayment, the HerVikas program will empower even more women entrepreneurs to strengthen their business growth. 

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