As India strides towards becoming a developed nation by 2047, universal financial inclusion emerges as a linchpin in its socio-economic progress. Yet, despite notable strides in financial infrastructure, vast swathes of India remain excluded from its benefits, particularly in rural areas and among underserved demographics. Stepping into this void is Dvara Holdings, a venture studio that has redefined financial inclusion through innovation, resilience, and a commitment to solving what it calls ‘White Space’ problems.
“Our goal has always been to create opportunities that transform the lives of the underserved by leveraging innovative financial solutions,” says Samir Shah, co-founder & executive vice-chair, Dvara Holdings. “We are not just building businesses; we are reshaping ecosystems.”
Having recently celebrated 17 years since its founding in 2008, Dvara Holdings has demonstrated resilience and adaptability through different cycles of evolution, consistently refining its approach to address emerging challenges and opportunities in financial inclusion.
A legacy of innovation
Founded by Nachiket Mor and Bindu Ananth, alongside colleagues from ICICI Bank, Dvara Holdings (formerly IFMR Trust) was conceived with a bold ambition: to transcend traditional banking models and expand financial access to India’s underserved populations. The name ‘Dvara,’ derived from the Sanskrit word for ‘access,’ encapsulates this vision.
“We recognised early on that traditional financial systems often bypass those who need them most,” says Ananth, co-founder & chair, reflecting on the journey. “Our work has focussed on not just filling these gaps but ensuring the solutions resonate deeply with the needs of the underserved.”
Dvara Holdings’ multifaceted approach combines the roles of promoter, operator, and investor, enabling it to incubate and scale ventures that address foundational gaps in financial inclusion. This adaptability has allowed the organisation to tackle issues ranging from rural credit access to digital financial tools.
Dvara Holdings began its journey by laying the groundwork for financial inclusion with four foundational entities, collectively creating the essential ‘rails’ for last-mile financial access in underserved areas:
• Northern Arc: Established in 2008, Northern Arc has become a powerhouse in bridging wholesale financial inclusion gaps. Its recent IPO, over-subscribed 111 times, raised Rs777 crore and underscored its market confidence. To date, Northern Arc has enabled over Rs173,000 crore in financing, touching more than 100 million lives and empowering 42 million women across 650 districts in India.
• Dvara KGFS: With a decentralised model rooted in rural communities, KGFS has disbursed Rs10,969 crore in loans, insured over 1.3 million lives and today manages an AUM of Rs2,267 crore. Operating across 25,123 villages, KGFS has adopted a wealth management approach tailored to individual customer needs.
• Dvara Solution: Initially an in-house tech arm, Dvara Solutions now serves 22 financial institutions through its Perdix platform, which manages a combined AUM of Rs17,250 crore. The platform’s co-lending tools and AI-driven innovations exemplify Dvara’s commitment to scalable technological solutions.
• Dvara Research: A cornerstone of Dvara Holdings’ mission, Dvara Research is dedicated to addressing barriers that low-income households face in accessing formal financial services. Operating across four verticals -- Financial Systems Design, Future of Finance Initiative, Household Finance, and Social Protection Initiative – it has influenced policies of institutions like the Reserve Bank of India, SEBI, and the ministry of finance. “Through our policy advocacy, we aim to create systemic change that amplifies the impact of financial inclusion,” says Ananth.
Expanding horizons
Building on the ‘rails’ established in Cohort One, Dvara Holdings’ second cohort expanded its focus to address specific underserved demographics, while introducing innovative solutions to deepen financial inclusion:
• Dvara E-Registry: Leveraging AI and data analytics, E-Registry empowers small farmers with tools like
KhetScore, assessing creditworthiness and providing doorstep financing.
It has enrolled over 100,000 farmers, disbursed loans worth Rs125 crore, and works with 300 FPOs across 20 states.
• Dvara E-Dairy: This venture’s biometric cattle identification technology has revolutionised financial access for dairy farmers. With over 200,000 cattle insured and loans worth Rs71 crore disbursed, E-Dairy supports over 600,000 farmers.
• Dvara SmartGold: By transforming India’s affinity for gold into a savings tool, SmartGold has attracted 150,000 customers, disbursed Rs30 crore in loans, and manages 125 kg of customer gold in secure vaults.
• Dvara Money: Addressing the unique challenges of gig workers, Dvara Money’s Spark Money platform has facilitated over 60,000 income tax returns and processed refunds exceeding Rs15 crore.
Pioneering health finance
Dvara Holdings has ventured into health finance with Dvara Health Finance, addressing the twin burdens of healthcare costs and chronic diseases like diabetes and hypertension. Its NEEM subscription model integrates affordable medications, digital consultations and financial solutions. A pilot programme in Maharashtra’s Satara district has already impacted 5,000 lives.
Despite its successes, Dvara Holdings operates in a landscape fraught with challenges. Limited digital literacy, infrastructural constraints and socio-economic disparities continue to hinder financial inclusion. Recognising these barriers, Dvara has embraced an ‘assisted digital’ model that combines technology with personalised human support.
“India’s diversity requires nuanced solutions,” says Ananth. “We have learned that innovation is most effective when it’s paired with deep local insights.”
The organisation’s ability to identify and address ‘white space’ problems positions it uniquely to navigate these complexities, demonstrating a scalable and sustainable model for inclusive growth.
“The journey has just begun,” reflects Shah. “Our vision is to create a financial system that is equitable, resilient, and transformative for generations to come.”
As the nation progresses toward its 2047 vision, Dvara Holdings
continues to play a pivotal role, building pathways for a future where financial inclusion is not just a goal but a reality for all.