Rajasthan-based non-banking financial company Kogta Financial India Ltd (KFL) has raised funding from IIFL Seed Ventures Fund I, marking its first draw down from early to growth stage fund, according to a statement.
The undisclosed funding from IIFL Wealth & Asset Management would help the asset financing company accelerate growth and increase market presence in the lending space. However, the fund typically invests Rs 15-50 crore in the target company and acquires significant minority stake.
Incorporated in 1996, KFL mainly operates in the states of Rajasthan, Gujarat and Maharashtra. It is primarily engaged in used and new vehicle financing including commercial vehicles, multi utility vehicles, cars, agriculture-based vehicles, etc. apart from financing of loan against property and personal loans. Promoters of KFL along-with their relatives held 100% of the KFL’s equity as on March 31, 2016, said a June 2016 CARE rating report.
Arun Kogta, Managing Director, KFL, said that the funds would act as a major catalyst in accelerating our growth plans going forward.
The company has total assets under management of Rs 160.25 crore (including Rs 15.06 crore of securitized portfolio) as on March 31, 2016 while its disbursement in the same period was Rs 168.44 crore. As per the provisional results for FY16, KFL reported a total income of Rs 25.99 crore, while it was Rs 16.51 crore in FY15. It reported a PAT of Rs 3.28 crore and Rs 2.98 crore in FY15.
Its net worth improved to Rs 28.51 crore in FY16 against Rs 25.98 crore in FY15, said SMERA Ratings in its September 2016 report. Equirus is the advisor for Kogta Financial.
IIFL Seed Ventures Fund I
The Fund focuses on investment in early to growth stage companies in financial services, consumer and healthcare sectors.
In November 2015, the fund said it has raised Rs 340 crore ($51.4 million) for its first close and expects to achieve its second interim close by the end of next month. The firm had said in August last year that it plans to raise Rs 1,000 crore early-stage fund.
Early today, Mumbai-based Poncho Hospitality Pvt. Ltd, which owns and operates on-demand food delivery services firm under the brand name of Box8, said it has raised $7.5 million (Rs 50 crore) in Series B funding from IIFL Seed Ventures Fund and existing investor Mayfield.
Several NBFCs that got the small finance bank license have closed many transactions in this year. In September, Utkarsh raised fresh capital of Rs 395 crore ($60 million) from several domestic institutional investors.
Janalakshmi Financial Services Pvt. Ltd, Disha Microfin Pvt. Ltd, Equitas Holdings Ltd and Ujjivan Financial Services Ltd are among the others which have raised funds either to launch small finance banks or meet the RBI’s norms on shareholding.
Janalakshmi raised about Rs 1,000 crore in April from investors led by global private equity firm TPG, though it didn’t say whether this round helped in reducing its foreign holding.
Equitas and Ujjivan went public earlier this year while Disha Microfin was looking to raise about Rs 300 crore to comply with the central bank’s foreign shareholding norms.
Besides, Bangalore-based lender to low-cost schools Thirumeni Finance Pvt. Ltd raised Rs 92.6 crore in Series B round of funding from a clutch of institutional investors in April this year.
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