Motilal Oswal Alternates, TPG, others bet $160 mn on SK Finance
Summary
Non-banking lender SK Finance said Tuesday it has concluded a new funding round worth Rs 1,328 crore ($160 million) from a bunch of new investors such as Motilal Oswal Alternates and existing backers including TPG Growth.The round was a combination of primary capital infusion into SK Finance and secondary transactions involving some investors, the lender said in a statement. It didnt give a breakup of the primary and secondary components.The announcement comes almost six months after VCCircle reported last year that Motilal Oswal Alternates was close to investing in SK Finance. The report mentioned Baring PE India, Axis and Mirae Asset as the other investors.The Jaipur, Rajasthan-based shadow lender that finances small businesses and the purchase of pre-owned vehicles will use the capital to grow its brand, distribution, technology and team.The investments from our existing investors and our new investors fortifies the conviction placed by them on our business model and our team, said Rajendra Kumar Setia, managing director and CEO of SK Finance, in a statement.The fundraising comes about two years after SK Finance, previously known as Ess Kay Finance Ltd, raised Rs 400 crore in a Series F round from IIFL Wealth and other investors. In addition to developing a robust operational model, the companys tech supported business has delivered improved efficiencies, said Simit Batra, Principal, TPG Growth.SK Finance was incorporated in 1994, and primarily finances used light commercial vehicles, multi-utility vehicles, cars, tractors and two-wheelers. It has presence across 12 states and union territories through its network of about 500 branches and over 9,600 employees as of September 2023.The company reported a profit after tax of Rs 222.8 crore for the year ended March 31, 2023, compared with Rs 142.9 crore the year before, its annual report shows.
Funding
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