TPG Growth leads $33 million investment in Ess Kay Fincorp

TPG Growth, a mid-market and growth equity platform of alternative asset firm TPG, Norwest Venture Partners, a multi-stage growth investment fund and Evolvence India, a leading India focused Private Equity platform, together have led a $33  million (Rs 235 crores) equity investment in Ess Kay Fincorp, a non-bank finance company. 

Ess Kay Fincorp is a differentiated NBFC primarily providing financing for income generation activity to the commercial vehicle segment and small businesses in rural and semi-urban regions across North and West India. The current round was fully subscribed by the existing investors. Additional terms of the transaction were not disclosed.

“We are very excited that existing investors through multiple rounds, including the current one, have reposed their faith in Ess Kay Fincorp. Since our last equity round, despite tight market conditions, we have continued to march towards our goal and capitalize on the platform built over the last 25 years by focusing on our niche and demonstrating the resilience of our business model. This equity infusion along with the right strategy will not only propel our growth but will also further cement our position in terms of our footprint, services and technology vis-a-vis our competition,” said Rajendra Setia, Managing Director and CEO of Ess Kay Fincorp.

“We are pleased to see the significant progress being made by Ess Kay Fincorp since our initial investment in October 2018. We have great confidence in Ess Kay Fincorp’s leadership team and are delighted to make a significant follow-on investment in this round to support the company’s next phase of growth,” said Gaurav Trehan, Partner at TPG.

“Ess Kay continues to surpass our growth and profit expectations, having grown AUM by 3x and PAT by 10x over the last eight quarters while maintaining robust asset quality. We are delighted to be partnering with Ess Kay once again as this investment marks our third equity funding round in the company,” said Niren Shah, Managing Director at Norwest Venture Partners.

Prior to the current round, Ess Kay Fincorp has raised three rounds of equity funding from prominent investors with the first round taking place back in 2012, followed by a Rs 200 crore investment in December 2017 and Rs 300 crores round in October 2018.

Ess Kay Fincorp was founded in 1994 by first-generation entrepreneur Rajendra Setia. Ess Kay Fincorp has a presence across more than 300 locations in Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Punjab and Haryana, servicing mostly low-income and self-employed individuals. Ess Kay Fincorp has over 130,000 customers, employs more than 3,000 people and has a loan book of Rs 2,500 crore.