SK Finance, an NBFC engaged in used and new vehicle financing and secured business loans, completed an equity round totalling Rs 1,328 crore from the existing investors namely Norwest Venture Partners, TPG Growth, Baring Private Equity India and incoming investors namely Duro Capital, Axis Alternatives, Ananta Capita and Mirae Asset Venture Investments (India).
Motilal Oswal Alternate Investment Advisors (MO Alts) also invested Rs 415 crore for a minority stake.
Founded by Rajendra Kumar Setia in 1994, SK Finance has a diversified product portfolio consisting of commercial vehicle loans, car loans, tractor loans, two-wheeler loans and secured business loans. The company has grown at a six-year CAGR (FY17-23) of over 40 per cent and has developed a diversified lending franchise, which has helped it raise debt capital at regular intervals. This, backed by consistent equity raises, has helped support its growth.
Talking about the transaction, Setia, who is currently the Managing Director (MD) and Chief Executive Officer (CEO), SK Finance, said, “The investments from our existing investors Norwest Venture Partners, TPG Growth, Baring Private Equity India and our new investors MO Alts who invested as a part of a larger round along with others, fortifies the conviction placed by them on our business model and our team. This primary capital infusion will help accelerate our growth through proposed investments in brand, distribution, technology and people.”
