News Digest

04 January 2018
Ess Kay Fincorp raises $32 million from Norwest, B

US-based Norwest Venture Partners, Baring Private Equity India and Evolvence India have led a $32 million (Rs200 crore) equity investment in Jaipur-based vehicle and small and medium enterprise (SME) finance company Ess Kay Fincorp Ltd, the non-banking financial company said on Wednesday. This is the second round of private equity (PE) investment in the company. In 2012, PE firm BanyanTree Growth Capital invested Rs18 crore in Ess Kay. Mint reported in September that the company was in talks with investors such as Norwest to raise Rs200 crore. In the latest round, Norwest has invested Rs108 crore in the company with the rest coming from Baring and Evolvence, said Atul Arora, chief financial officer at Ess Kay Fincorp. Spark Capital Advisors was the financial advisor to Ess Kay Fincorp. “BanyanTree Growth Capital, with a 25% stake, completely exited the company as part of this round,” he said. Founded by Rajendra Setia, Ess Kay Fincorp provides vehicle finance and SME finance in rural and semi-urban India. It funds purchases of used commercial vehicles, tractors, cars, two-wheelers and also provides business loans to SMEs.

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