1 year ago
Kinara Capital Faces Liquidity Crisis Amid Loan Recall Notices
Imagine a company called Kinara Capital that helps small businesses by giving them loans.
They are having money problems right now.
Some lenders are asking for their money back early, meaning Kinara Capital has less money to use.
Because of this, a company that checks how financially healthy Kinara Capital is has lowered their rating, showing they are worried.
Kinara Capital lost money last year after making a profit the year before.
They are trying to stay in business, maybe by selling some of their assets.
Kinara Capital, an MSME lender, faces a deepening liquidity crisis.
Lenders are recalling loans and appropriating fixed deposits.
ICRA downgraded Kinara Capital's credit ratings due to financial concerns.
The company reported a net loss of ₹351 crore for FY25.
Kinara Capital is considering asset sales to stabilize its position.
- Who
- Kinara Capital, an MSME lender founded by Hardika Shah.
- What
- Kinara Capital is facing a deepening liquidity crisis.
- Where
- Bengaluru, India.
- When
- As of August 2, 2025, with financial losses reported for FY25.
- Why
- Lenders are recalling loans and appropriating fixed deposits, leading to financial losses.
Key facts
- Company
- Kinara Capital
- Founder
- Hardika Shah
- Business
- MSME Lender
- Net Loss FY25
- ₹351 crore
- Total Income FY25
- ₹601 crore
- AUM as of March 2025
- ₹2,841 crore
- Outstanding Debt (June)
- ₹1,853 crore

