[Funding alert] Ess Kay Fincorp raises $33M from TPG, others
Non-bank lender Ess Kay Fincorp, which focuses on commercial vehicles and small business owners, has raised $33 million. The company plans to use the funds for business growth.
Jaipur-headquartered non-bank lender Ess Kay Fincorp has raised $33 million (around Rs 235 crore) in a round led by private equity fund TPG.
Valuation details were not disclosed and the funds raised will be used for business growth.
It can be noted that the shadow banking segment has been going through choppy waters for over a year starting with the liquidity crunch.
Ess Kay is a 25-year-old company with a Rs 2,500 crore book that focuses on commercial vehicles and small business owners. This is the fourth round of funding for the company since 2012; Rs 300 crore were raised in the last one a year ago.
All the investors in the current round are existing ones, and include TPG, Norwest Venture Partners and Evolvence India.
"Since our last equity round, despite tight market conditions, we have continued to march towards our goal and capitalise on the platform built over the last 25 years by focusing on our niche and demonstrating the resilience of our business model," Ess Kay Managing director and chief executive Rajendra Setia said.
"We have great confidence in Ess Kay Fincorp's leadership team and are delighted to make a significant follow-on investment in this round to support the company's next phase of growth," TPG Partner Gaurav Trehan said.
This July, TPG also led a $50 million funding round in Chennai-based non-banking financing company Five Star Business Finance Limited (Five Star), at $950 million valuation. This was the second round of investment made by TPG into Five Star Business Finance, and it comes within a year from the initial $100 million round raised in August 2018. Five Star aims to have a portfolio of about Rs 4,000 crore by the end of this fiscal year.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Teja Lele Desai)