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Rural focused financial services company Dvara Kshetriya Gramin Financials (Dvara KGFS) has raised $10 million in debt from global impact investor, BlueOrchard Microfinance Fund.

“The company aims to grow by 40% in the current financial year, and exploring various avenues of raising iquidity will be critical to ensuring of a well-diversified resource profile,” said LVLN Murty, Managing Director & CEO of Dvara KGFS.

“Our increased partnerships with like-minded foreign funds working in the impact space will be instrumental in expanding our reach and empowering even more underserved communities by providing them with access to critical financial services,” he added.

The investment was raised through the issuance of listed non-convertible foreign currency bonds under the External Commercial Borrowings route. These bonds are listed on the India International Exchange in GIFT City, Gujarat

“By listing its debt on the India International Exchange, the company also gains visibility to the fast-evolving international debt market, thereby securing sustainable access to lower-cost debt and allowing us to maximize our impact on rural communities,” said Shilpa Bhatter, CFO of Dvara KGFS.

Earlier this month, SME lending platform Lendingkart had raised $10 million via external commercial borrowing from a BlueOrchard fund listed on the India International Exchange.

Last year, Dvara raised $14.4 million through listed NCDs from Singapore-based Impact Investment Exchange.

Dvara KGFS is a medium-tier NBFC that provides loans and other financial services to more than 2.41 million customers in rural India. It takes an omni-channel approach and operates over 400 branches across 110 districts in 10 states.