TPG joins round for India’s Ess Kay Fincorp

TPG participated via its middle market investment platform TPG Growth. It follows a $42 million round from the three investors last year. Earlier in 2018, Norwest and Evolvence joined Baring Private Equity India in a separate $32 million investment in the company, which provided an exit for India’s BanyanTree Growth Capital. 

Founded in 1994, Ess Kay offers financing for five different product segments, including commercial vehicles, agricultural and construction equipment, passenger vehicles, two-wheelers and small business loans. The company says it has a dominant market position in its focus geographies, which include rural and semi-urban regions in six Indian states.

The company has 130,000 customers and a loan book of INR25 billion ($350 million). “Ess Kay continues to surpass our growth and profit expectations, having grown [assets under management] by 3x and [profit after tax] by 10x over the last eight quarters, while maintaining robust asset quality,” Niren Shah, a managing director at Norwest said in a statement.

TPG Growth is investing its fourth global fund, which closed at $3.7 billion in 2017, along with impact investment vehicle The Rise Fund. The firm's previous activity in the financial inclusion space includes investments in Chinese operators VCredit, which recently listed in Hong Kong, and CFPA Microfinance Management, which also focuses on rural communities. 

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• Topics
• South Asia
• Financials
• Expansion
• India
• TPG Capital
• Evolvence Capital
• Norwest Venture Partners
• Financial Services
• NBFCs