[Funding alert] Jaipur-based NBFC SK Finance raises Rs 400 Cr in Series F round led by IIFL Wealth
, a Jaipur-based NBFC, has raised Rs 400 crore (approximately $53 million) in Series F round of funding from IIFL Wealth and other new investors.
Incorporated in 1994 and formerly known as Ess Kay Fincorp it is backed by other investors such as TPG Growth, Norwest Venture Partners, Baring India, and Evolvence India Fund.
With this capital raise, SK Finance has cumulatively raised about Rs 1,400 crore from six investors.
SK Finance MD and CEO Rajendra Setia said, “The current investment will enable the company to continue its growth trajectory and further strengthen the leadership position built over the years.”
SK Finance offers financing for five different product segments, including commercial vehicles, agricultural and construction equipment, passenger vehicles, two-wheelers, and small business loans.
As of September 30, 2021, SK Finance had an active borrower base of approximately 220,000 individuals and assets under management of approximately Rs 4,100 crore.
According to this NBFC, it has created a niche position in rural and semi-urban markets with deep distribution across north, west and central India covering 10 states with a network of 390 branches that perform the functions of on-ground sales, underwriting and collection infrastructure.
SK Finance noted that being one of the oldest NBFCs, it has seen multiple cycles and disruptions in the business environment given multiple external events over the last few years.
The NBFC claimed that it has continued to fare well both in terms of growth and asset quality, having delivered a loan book growth at over 40 percent CAGR over the last seven years while maintaining healthy asset quality and return profile.
“Our existing investors along with the new investors as well as our 55+ lending partners add tremendous strength to our balance sheet and growth plans, as we remain committed to creating value for all our stakeholders,” Rajendra said.