Au Financiers raises $21M in fourth round from existing investors, promoters

Rajasthan-based non-banking finance company Au Financiers (India) Ltd has raised $21 million (around Rs 126 crore) in its fourth round of fundraising through preferential allotment to existing shareholders, including the promoters.

The investment will be primarily used for expanding its network in 10 states namely Rajasthan, Maharashtra, Gujarat, Goa, Punjab, Madhya Pradesh, Chhattisgarh, Delhi-NCR, Haryana and Himachal Pradesh and for future business expansion activities of the company.

Existing shareholders International Finance Corporation (IFC), Warburg Pincus and ChrysCapital participated in this round. Financial services firm Motilal Oswal Securities has also invested $3 million in the latest round. Previously two private equity funds managed by Motilal Oswal Group had invested in the NBFC.

The Jaipur-headquartered firm, which has 225 branches in north western parts of India, had previously raised funds in 2008, 2010 and 2012. The company expects its loan book to soon hit the $1 billion milestone.

In February this year, IFC lent $30 million to Au Financiers through non-convertible debentures. The private sector investment arm of the World Bank has backed several NBFCs in the past, including Magma Fincorp Ltd and Bandhan Financial Services.

Warburg Pincus also separately controls public listed NBFC Capital First.

(Edited by Joby Puthuparampil Johnson)

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