Motilal Oswal’s private equity firm—MO Alternate Investment Advisors (“MO Alts”)—also participated in this round with ₹415 crore for a minority stake, the firm said.

Founded by Rajendra Kumar Setia in 1994, SK Finance has a diversified product portfolio consisting of commercial vehicle loans, car loans, tractor loans, two-wheeler loans and secured business loans.

“The investments from our existing investors Norwest Venture Partners, TPG Growth, Baring Private Equity India and our new investors MO Alts who invested as a part of a larger round along with others, fortifies the conviction placed by them on our business model and our team,” said Rajendra Kumar Setia, MD and CEO of SK Finance.

For the last six years, the company has seen a compounded growth rate or CAGR of over 40%, the release said. It is present across 12 states and union territories via a network of more than 500 branches as of September 2023.

“Since our initial investment in 2017, SK Finance has transformed itself into a multiline, multi-geography used vehicle financing and business loans NBFC. SK Finance has delivered improved asset quality across business cycles and has invested in people, technology and infrastructure,” said Niren Shah, MD and Head of India, Norwest Venture Partners.

“The used vehicle financing space is significantly underpenetrated, and SK Finance’s customer connect and continuing focus on granular ticket size products has led to a learning curve and scale benefits. We are enthusiastic about collaborating with SK Finance to build a financial institution dedicated to livelihood financing for entrepreneurs nationwide,” said Mr. Vinit Mehta, Managing Director and Head of BFSI at MO Alts.

Milestone Alert!
Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Published: 23 Jan 2024, 11:18 PM IST