Kinara Capital Seeks Majority Stake Sale To Raise Funds

17 Nov 2025 CW Team

Shah aims to raise “a few hundred crores” by selling a controlling stake, enabling the company to restart lending operations. She noted that potential investors would likely want full strategic control, though discussions remain preliminary and names have not been disclosed.

Debt Crisis Deepens Backed by Gaja Capital and British International Investment, Kinara Capital provides secured and unsecured loans to small businesses and has been grappling with a liquidity crunch for several months. The firm reported its first-ever loss in 2024–25 due to rising bad loans. Matters worsened in July when a private-sector bank set off its loan against balances in Kinara’s account, prompting other lenders to issue recall notices. Subsequent credit downgrades pushed the lender into default-grade ratings.

Shah said Kinara has around 20 domestic and 11 international lenders, with total debt standing at Rs 14 billion as of August, nearly 70 per cent of which is owed to overseas creditors. Attempts to raise capital or sell portions of the loanbook failed to generate cash. “We just completely lost all liquidity,” Shah said, noting that potential equity proposals did not materialise.

In October 2022, the lender raised Rs 2 billion led by British International Investment, projecting growth to Rs 60 billion by 2025. Kinara was valued at Rs 10.6 billion as at 30 December 2024, according to Tracxn.

Operations At A Standstill Kinara has stopped issuing fresh loans and is prioritising recovery of existing dues. Shah said operations will resume once new capital is secured. The lender’s assets under management stood at Rs 28.31 billion at the end of 2024–25, down from Rs 31.42 billion the previous year.

Kinara has now reached a settlement with most domestic lenders, who will recover their principal and some interest. Foreign lenders had agreed to a standstill, and repayments have recently resumed. Shah added that the firm will continue to explore loan portfolio sales to generate liquidity for international lenders.

In August, Care Ratings downgraded Kinara after delays in servicing principal and interest on its non-convertible debentures. The rating agency flagged persistent slippages at 8 per cent in 2024–25, matching 2023–24 levels, alongside deterioration in asset quality and increased liquidity stress.

Kinara is among several non-bank lenders cleaning up their balance sheets after a boom in unsecured loans. As reported on 28 October, lenders such as Kinara Capital, Lendingkart, Aye Finance and Ashv Finance have scaled back unsecured lending following tighter regulatory scrutiny and reduced funding access. Many have resorted to selling or securitising unsecured loan portfolios or are considering such measures.

Crisis-hit non-bank financier Kinara Capital Pvt Ltd is seeking strategic investors—including fintech firms and other non-banking financial companies—to infuse fresh capital in exchange for a majority stake, founder and chief executive Hardika Shah said. Shah aims to raise “a few hundred crores” by selling a controlling stake, enabling the company to restart lending operations. She noted that potential investors would likely want full strategic control, though discussions remain preliminary and names have not been disclosed. Debt Crisis Deepens Backed by Gaja Capital and British International Investment, Kinara Capital provides secured and unsecured loans to small businesses and has been grappling with a liquidity crunch for several months. The firm reported its first-ever loss in 2024–25 due to rising bad loans. Matters worsened in July when a private-sector bank set off its loan against balances in Kinara’s account, prompting other lenders to issue recall notices. Subsequent credit downgrades pushed the lender into default-grade ratings. Shah said Kinara has around 20 domestic and 11 international lenders, with total debt standing at Rs 14 billion as of August, nearly 70 per cent of which is owed to overseas creditors. Attempts to raise capital or sell portions of the loanbook failed to generate cash. “We just completely lost all liquidity,” Shah said, noting that potential equity proposals did not materialise. In October 2022, the lender raised Rs 2 billion led by British International Investment, projecting growth to Rs 60 billion by 2025. Kinara was valued at Rs 10.6 billion as at 30 December 2024, according to Tracxn. Operations At A Standstill Kinara has stopped issuing fresh loans and is prioritising recovery of existing dues. Shah said operations will resume once new capital is secured. The lender’s assets under management stood at Rs 28.31 billion at the end of 2024–25, down from Rs 31.42 billion the previous year. Kinara has now reached a settlement with most domestic lenders, who will recover their principal and some interest. Foreign lenders had agreed to a standstill, and repayments have recently resumed. Shah added that the firm will continue to explore loan portfolio sales to generate liquidity for international lenders. In August, Care Ratings downgraded Kinara after delays in servicing principal and interest on its non-convertible debentures. The rating agency flagged persistent slippages at 8 per cent in 2024–25, matching 2023–24 levels, alongside deterioration in asset quality and increased liquidity stress. Kinara is among several non-bank lenders cleaning up their balance sheets after a boom in unsecured loans. As reported on 28 October, lenders such as Kinara Capital, Lendingkart, Aye Finance and Ashv Finance have scaled back unsecured lending following tighter regulatory scrutiny and reduced funding access. Many have resorted to selling or securitising unsecured loan portfolios or are considering such measures.

Infrastructure Urban

04 May 2026

Jyoti Structures FY26 profit rises 56.5%

Jyoti Structures (JSL) recently reported strong financial results for the quarter and year ended 31 March 2026, driven by disciplined execution, cost management and steady progress across its order book.For Q4 FY2025-26, total income rose 44.2 per cent to Rs 2.41 billion from Rs 1.67 billion in Q4 FY2024-25. EBITDA increased 58.6 per cent to Rs 237 million, while EBITDA margin improved by 89 basis points to 9.84 per cent. Profit before tax grew 53.3 per cent to Rs 188.5 million, and net profit rose 51.9 per cent to Rs 181.4 million.For FY2025-26, total income grew 53.1 per cent to Rs 7.72 bill..

Infrastructure Energy

04 May 2026

Cat BEPU to Power Doppstadt Separator at IFAT 2026

Caterpillar’s Cat Battery Electric Power Unit (BEPU) has been selected by Doppstadt to power its SWS 6 Spiral Shaft Separator, which will be showcased for the first time at IFAT 2026 in Munich, Germany, from 4–7 May.The compact plug-and-play BEPU is designed to replace a diesel engine within the same space, using the same mounting locations and relative machine position. It integrates the battery, motor, inverter, onboard charging, cooling and controls, enabling OEMs to electrify existing chassis platforms without extensive redesign.Caterpillar and Cat dealer Zeppelin Power Systems have be..

Infrastructure Urban

04 May 2026

VECV sales rise 6.9% in April 2026

VE Commercial Vehicles, a joint venture between Volvo Group and Eicher Motors, recorded sales of 7,318 units in April 2026, compared to 6,846 units in April 2025, registering 6.9 per cent growth. The total included 7,159 units under the Eicher brand and 159 units under the Volvo brand.Eicher branded trucks and buses reported sales of 7,159 units during the month, up 6.6 per cent from 6,717 units in April 2025. In the domestic commercial vehicle market, Eicher sales rose 8.6 per cent to 6,797 units from 6,257 units a year earlier.Exports declined 21.3 per cent, with VECV recording 362 units in ..