TPG Growth-backed SK Finance, an NBFC engaged in used and new vehicle financing and secured business loans, raised Rs 1,328 crore from existing investors along with few other new investors. Marquee investors who participated in the funding round include Norwest Venture Partners, TPG Growth, Baring Private Equity India.
Fresh investors include Duro Capital, Axis Alternatives, Ananta Capital and Mirae Asset Venture Investments (India).
Motilal Oswal’s PE firm – MO Alternate Investment Advisors also participated in this larger fund raise as an incoming investor investing Rs INR 415 crore for a minority stake.
DC Advisory India acted as the exclusive financial advisor for the transaction.
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 6-year CAGR (FY17-23) of over 40% and has developed a diversified lending franchise which has helped it raise debt capital at regular intervals. This backed by consistent equity raises, have helped support its growth.
“The investments from our existing investors 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,” said Rajendra Kumar Setia, Managing Director and CEO, SK Finance.
SK Finance is aiming for an initial public offer (IPO) and is currently under discussions to float the issue later this year. The planned IPO will be around Rs 2000-2500 crore, according to reports.
“We are pleased to see the significant progress being made by SK Finance since our initial investment in 2018, with the company today emerging as a scaled player in the used vehicle and MSME lending space. In addition to developing a robust operational model, the company’s tech supported business has delivered improved efficiencies,” said Simit Batra, Principal, TPG Growth.
