Ess Kay Fincorp Limited (“Ess Kay”, “Ess Kay Fincorp” or the “Company”), one of the largest unlisted used vehicle and SME financiers, today announced the successful closure of ₹3,370 million investment from leading global investors. With this investment the Company has raised over ₹10 billion of external capital from marquee investors. Existing investors TPG Growth, Norwest Venture Partners and Evolvence along with the Promoter Mr Rajendra Setia invested as part of this round.
The transaction reiterates the investors’ conviction in Ess Kay’s superior execution capabilities, consistent performance and unique positioning in the significantly underpenetrated used vehicle and SME finance space.
Spark Capital acted as an exclusive financial advisor to the Company in relation to the transaction.
Mr. Rajendra Setia, Managing Director of Ess Kay, on the successful closure of the transaction, commented, “Over the years, we have created a niche positioning for ourselves in the rural & semi-urban markets with deep distribution across North, West and Central India, on-ground sales and collection infrastructure to cater to the underserved customer segment, strong underwriting and focus on asset quality. We are grateful to our existing investors – TPG Growth, Norwest Venture Partners & Evolvence for their continued support and confidence on Ess Kay. They, along with Baring India and our 45 lending relationships, add tremendous strength to our balance sheet and growth plans, as we emerge as a leading player in the used vehicle finance and SME finance segment.”
Akshay Tanna, Partner, TPG Growth, remarked, “This is our third round of investment in the Company in the last 2.5 years and we continue to be strong believers in Ess Kay’s business model that bridges the large credit gap that exists for un-banked and under-banked populations in India. The strength of the founder and management team has allowed the company to navigate several disruptions along its journey, creating a successful rural focused lending platform in India. We are excited to strengthen our relationship with Ess Kay and look forward to continuing to work with the team to build on Ess Kay’s long-term success.
Niren Shah, Managing Director, Norwest India, remarked, “The key differentiator for Ess Kay has been its core competencies built over 25 years of lending to a significantly underbanked customer segment, sharp on-ground infrastructure and flexible product offerings to cater to a wide range of borrowers. Having witnessed Ess Kay’s transformational journey as one of its earliest institutional Private Equity investors, we are delighted to deepen our relationship and invest further for the fourth time to support the Management in its vision to become a market leader in the years to come.
Ajit Kumar, Managing Partner, Evolvence, remarked, “Ess Kay’s resilience and ability to grow profitably through multiple cycles (including Covid) is a testament to the strength of the franchise. Having been invested in the Company since 2017, we are excited to be a part of Ess Kay’s incredible journey and continue to support the Company as it embarks on its next phase of profitable growth.”