Kogta Financial India raises Rs 300 crore in Series-C funding round

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Mumbai | Published: October 8, 2019 1:46:20 AM

Kogta Financial India, a retail non-banking financial company (NBFC) that specialises in vehicles and MSME financing, announced the closure of its Rs 300-crore Series-C fund raise on Monday led by Creador IV LP and Morgan Stanley Private Equity.

Kogta Financial, which was founded in 1996, has a loan book of about Rs 825 crore as on September 30. Kogta Financial, which was founded in 1996, has a loan book of about Rs 825 crore as on September 30.

Kogta Financial India, a retail non-banking financial company (NBFC) that specialises in vehicles and MSME financing, announced the closure of its Rs 300-crore Series-C fund raise on Monday led by Creador IV LP and Morgan Stanley Private Equity.

Kogta Financial, which was founded in 1996, has a loan book of about Rs 825 crore as on September 30. The firm operates 105 branches across 8 states in central and western India, serving over 30,000 customers. It operates across Rajasthan, Gujarat, Maharashtra, Madhya Pradesh, Delhi, Punjab, Haryana and Uttar Pradesh.

The Jaipur-based company offers financing for used and new commercial vehicles, cars and tractors, along with loans to the MSME segment.

Varun Kogta, ED and chief financial officer at Kogta Financial, said this is the second investment in the company in the last one year. “This investment has substantially increased the net owned funds and has contributed to the positive asset liablity management (ALM) and surplus liquidity on the balance sheet of the company,” he said.

IIFL Seed Ventures Fund was the first institutional investor in the company, having invested in October 2016. The fund continues to remain invested in the firm.

In late 2018, Kogta Financial had raised Rs 154 crore in a round led by a fund managed by Morgan Stanley Private Equity Asia and IIFL Seed Ventures.

As part of the transaction, the fund managed by Morgan Stanley Private Equity Asia had invested about Rs 114 crore of primary equity capital into the firm for a minority stake while IIFL Seed Ventures had further invested Rs 40 crore.

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