TPG Growth leads $42-million equity investment in Ess Kay Fincorp

Traditional underwriting methods in India exclude a majority of creditworthy individuals and small and medium enterprises

TPG Growth, a middle-market and growth equity platform of alternative asset firm TPG, has led a $42-million (Rs 3 billion) equity investment in Ess Kay Fincorp, a non-banking finance company.

The latter entity primarily finances income generation activity for the commercial vehicle segment and small businesses. 

Existing investors Norwest Venture Partners and Evolvence India Fund-II are investing with TPG Growth. The terms were not disclosed. Spark Capital was the only financial advisor on the transaction.

Founded in 1994 by Rajendra Setia, a first-generation entrepreneur, Ess Kay Fincorp commenced as a two-wheeler financier in Rajasthan. It is now at 250 locations across Rajasthan, Gujarat,