Ontario Teachers' Pension Plan acquires stake in Kogta Financial for Rs 1,230 Cr
Kogta Financial will use the funds to drive growth across its product offerings and expand its regional presence.
Ontario Teachers’ Pension Plan Board (OTPP) has acquired a minority stake in NBFC Kogta Financial Ltd by investing Rs 1,230 crore ($148 million).
Kogta Financial will use the funds to drive growth across its product offerings and expand its regional presence. It will also provide partial exits to Kogta's existing institutional investors, and Creador.
The company has received investments from Creador IV LP, Morgan Stanley Private Equity Asia, and Multiples Alternate Assets Private Ltd.
“We are pleased to welcome aboard Ontario Teachers’. Their experience would help Kogta navigate the next phase of its growth journey, deepening its reach across chosen geographies and product segments. We believe the Investment by Ontario Teachers’ is a stamp of confidence for the underlying business model built over the years,” Arun Kogta, MD and CEO of Kogta, said.
Rahul Mukim, Director of Private Capital, India, is set to join Kogta's Board as the nominee for Ontario Teachers' Pension Plan as part of the investment. Kotak Investment Banking served as the financial advisor for the transaction.
Jaipur-based Kogta Financial, founded in 1996, has served over 325,000 customers through 225+ branches, focusing on vehicle finance and MSME financing.
The company has seen a 40% compound annual growth rate in its assets under management since its initial investment in October 2016.
“Our investment in Kogta underscores our commitment to identifying and backing high-growth opportunities in India’s vibrant financial services sector. The used vehicle and livelihood financing segment is significantly underpenetrated, and Arun and Varun have built a scalable business model with a strong focus on asset quality, deep technology orientation, and talent,” Deepak Dara, Senior Managing Director and Head of India for Ontario Teachers’, said.
Canada-based Ontario Teachers' Pension Plan Board has invested in over 50 countries, focusing on various assets like equities, fixed income, credit, commodities, natural resources, infrastructure, real estate, and venture growth, providing retirement income to 340,000 working members and pensioners.
Edited by Kanishk Singh