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Muthoot raises $9.2 million from Kotak as part of second funding round

  • Anita Davis
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One month after Indian non-bank financial company Muthoot raised INR157 crore ($33.6 million) from Baring Private Equity Partners India and Matrix Partners India as part of its first institutional funding round, the company has now garnered an additional INR43 crore ($9.2 million)from Kotak India Private Equity Fund (KIPEF) for a minority stake in the company, according to reports.

The investment comes as part of Muthoot's second round of institutional funding and follows the July transaction that saw Muthoot dilute a 4% stake to Baring and Matrix Partners. According to reports, the deal valued Muthoot at INR3,925 crore ($837.7 million).

Muthoot Finance specializes in loans collateralized with family gold, a popular form of financing in India, and has been in business for 123 years, with a network of 1,800 branches.

Recently, Kotak, part of the Kotak Mahindra Group with some $750 million under management, has also taken a minority stake in Indian power transmission and services company Diamond Power Infrastructure Ltd. In April, Kotak Investment Advisors further contemplated exits for up to five of its portfolio companies: Bharat Fritz Werner, BVG India, Home Solutions Retail, Metahelix Life Sciences and SIRO Clinpharm, according to reports.

 

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