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IIFL Wealth, others invest $53 mn in TPG Growth-backed SK Finance
Photo Credit: 123RF.com

Private equity-backed SK Finance (formerly Ess Kay Fincorp), a Jaipur-based unlisted used-vehicle and SME financier, has closed its Series F fundraise to raise about Rs 400 crore (around $53 million) from IIFL Wealth and other new investors. 

Incorporated in 1994, SK Finance is backed by marquee investors including TPG Growth, Norwest Venture Partners, Baring India, and Evolvence India Fund that is invested in the company since 2017.

With this capital raise, the company to-date has raised a total of about Rs 1,400 crore from six investors, SK Finance said in a statement on Thursday. Spark Capital acted as the financial adviser to the company in relation to the fundraising round, the non-banking financial company (NBFC) added. 

A non-deposit accepting asset finance retail franchisee in the Indian mid-market space, SK Finance offers financing for five product segments including commercial vehicles, agricultural and construction equipment, passenger vehicles, two wheelers and small business loans.

In May this year, it raised Rs 337 crore (about $45 million) in the Series E fundraising round from TPG Growth, Norwest Venture Partners and Evolvence Fund along with SK Finance's promoter Rajendra Setia, a first-generation entrepreneur. In 2018, PE investor BanyanTree Growth Capital fully exited the company with investment from Norwest Venture Partners.

Last year, it raised Rs 86 crore (about $11.8 million) in debt funding from Swiss asset manager responsAbility AG.

As of 30 September 2021, SK Finance had an active borrower base of around 2.20 lakh individuals and assets under management (AUM) of approximately Rs 4,100 crore with a loan book growth at over 40% CAGR over the last seven years. 

The company has expanded in 10 states with on-ground sales, underwriting, and collection infrastructure catering to the underserved customer segment through its network of 390 branches. “We welcome IIFL AMC and other new investors to the SK family. The current investment will enable the company to continue its growth trajectory and further strengthen the leadership position built over the years,” said Rajendra Setia, Managing Director and CEO of SK Finance.

Earlier this month, IIFL AMC led $24 million (around Rs 180 crore) Series E funding round in dialysis chain NephroPlus, which is backed by Bahrain-based private equity firm Investcorp.

IIFL AMC is part of homegrown IIFL Wealth & Asset Management group, backed by Canadian billionaire Prem Watsa's Fairfax Holdings

Among its other recent investment through its IIFL AMC private equity includes unicorn meat brand Licious, emotive products maker robotics firm Miko and in September, IIFL PE also led $24 million investment in Indian tea brand Vahdam India, first reported exclusively by VCCircle.

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