TPG Growth leads $42m round for Indian NBFC

Existing investors Norwest Venture Partners and Evolvence India also participated in the round, according to a statement. Both GPs, along with Baring Private Equity India, took part in a $32 million round for the company in January, which facilitated a full exit for BanyanTree Growth Capital.

Ess Kay was founded in Rajasthan in 1994 to offer financing for two-wheelers, and now operates 250 branches across six states in western India. As of September 2018, the NBFC had an active borrower base of about 100,000 individuals and INR15.5 billion ($211 million) in assets under management.

The company targets customers in rural and semi-urban areas, with a focus on self-employed low-income individuals who have difficulty accessing traditional financing and credit products. It provides financing for commercial vehicles, agricultural and construction equipment, passenger vehicles, and two-wheelers, along with small business loans.

“With its differentiated business model supported by a direct sourcing network, hands-on approach to underwriting, quick turnaround, and robust collection mechanism, Ess Kay Fincorp has demonstrated a unique advantage and opportunity in a difficult-to-serve category,” said Gaurav Trehan, a partner at TPG, in a statement.

TPG Growth is investing its fourth global fund, which closed at $3.7 billion last year, along with impact investment vehicle The Rise Fund. Investments in Asia’s financial services sector include Chinese online consumer finance platform VCredit, which raised HK$1.2 billion ($152 million) in its Hong Kong IPO this year.

TPG Capital also has a substantial portfolio of financial services assets across Asia, including Indian NBFC Five Star Business Finance and microfinance lender Janalakshmi Financial Services.

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• Topics
• South Asia
• Financials
• Expansion
• India
• NBFCs
• TPG Capital
• Norwest Venture Partners
• Evolvence Capital
• Growth capital