Jaipur-based Ess Kay Fincorp Ltd., a Non-Banking-Financial-Company (NBFC) has received an investment of INR 337Crore (USD 45Million) from Northwest Venture Partners, Evolvence, and TPG Group. While this is the third round of investment by TPG Growth after 2.5 years, the other two are investing for the fourth time. The three firms invested in a Series E round of funding along with promoter Rajendra Setia.
Ess Kay Fincorp is an unlisted, used vehicle and SME financier. With this round of investment, it will raise a total of INR 1,000 crore thus far from marquee investors, as reported by Business Line. For this round of funding, Spark Capital is acting as an exclusive financial advisor to Ess Kay.
The transaction reiterates the investor’s conviction in Ess Kay’s superior execution capabilities, consistent performance, and unique positioning in the significantly underpenetrated used vehicle, and small and medium enterprise (SME) finance space, the lender said in a statement.
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Last year, Ess Kay had raised $11.8 million/ INR 86 crore in debt financing from Ability AG, a Swiss asset manager. Earlier, in 2019, TPG Growth, a growth equity platform and middle-market of alternative asset firm TPG, and Norwest Venture Partners, a multi-stage growth investment firm, along with Evolvence India had led a $33 million/ INR 235 crore investment in Ess Kay. In early 2018, Norwest Venture Partners had led an INR 200 Crore/ $32 million funding round in Ess Kay. Ess Kay also counts Blacksoil Capital, Baring Private Equity Partner India Ltd, and Northern Arc Capital, among other notable names, as its key investors.
Ess Kay has its presence across 350 branches in seven states including Gujarat, Rajasthan, Maharashtra. Madhya Pradesh, Haryana, and Punjab. It serves over 2.25 lakh low-income customers who need financial connectivity the most.
Norwest India’s managing director Nirav Shah said the key differentiator for Ess Kay has been its core competencies built over 25 years of lending to a significantly underbanked customer segment, sharp on-ground infrastructure, and flexible product offerings.