Archive · 12 Nov 2025
Kinara Capital Seeks Majority Stake Sale to Overcome Debt Crisis
Kinara Capital is a company that lends money to small businesses, but it's having a big problem with money right now.
They owe a lot of money to different banks and lenders, and some of their loans to customers are not being paid back.
This means Kinara doesn't have enough cash to lend out new loans.
To fix this, the boss, Hardika Shah, wants to sell most of the company to another company that has more money.
This new company would then help Kinara get the cash it needs to start lending again and pay back the money it owes.
They are talking to other financial companies about this big sale, hoping to get enough money to get back on their feet.
Kinara Capital is looking to sell a majority stake to strategic investors to raise funds and restart lending.
The non-bank financier is facing a severe liquidity crisis, reporting losses for the first time in 2024-25 due to bad loans.
The company's total debt stood at ₹1,400 crore as of August, with nearly 70% owed to international lenders.
Kinara Capital has stopped disbursing new loans and is focused on recovering existing ones while settling with domestic lenders.
Credit ratings have been downgraded to D (default) following delays in servicing debt payments and increased delinquencies.
- Who
- Kinara Capital Pvt. Ltd, a non-bank financier, and its founder/CEO Hardika Shah
- What
- Seeking to sell a majority stake to strategic investors (fintechs, other NBFCs) to raise several hundred crores and restart lending operations.
- When
- Currently navigating a liquidity crisis; reported losses for the first time in 2024-25; received credit rating downgrades to D in late July.
- Where
- Mumbai, India
- Why
- To overcome a severe liquidity crisis caused by bad loans, loan recalls, and difficulty in raising capital.
- Company
- Kinara Capital Pvt. Ltd
- Founder & CEO
- Hardika Shah
- Total Debt (August)
- ₹1,400 crore
- International Lenders Share of Debt
- Nearly 70%
- Assets Under Management (End of 2024-25)
- ₹2,831 crore
- Last Funding Round (December)
- ₹200 crore
- Valuation (December 30, 2024)
- ₹1,060 crore