SK Finance aiming for IPO acquires new shares worth Rs 1,328 million from existing investors

SK Finance is an NBFC that specializes in both used and new car financing and secured business loans. INR132.8 billion in funds. The investment was led by existing investors, including notable investors such as Norwest Venture Partners, TPG Growth and Baring Private Equity India, with additional contributions from selected new investors.

New investors in the venture consist of Duro Capital, Axis Alternatives, Ananta Capital and Mirae Asset Venture Investments (India). MO Alternative Investment Advisors, Motilal Oswal’s private equity firm, will participate in this major fundraising effort as a new investor. INR$415 million for minority stakes. The transaction was exclusively advised by DC Advisory India.

SK Finance is currently in discussions regarding an initial public offering (IPO), aiming to issue the shares in the second half of this year. According to the report, the expected IPO scope is: INR200-250 billion.

SK Finance boasts a diverse product portfolio including commercial vehicle loans, auto loans, tractor loans, two-wheeler loans, and secured business loans.

“The investment from our existing investors and new investor MO Alts, who invested as part of a larger round along with other investors, strengthens their belief in our business model and our team. The injection proposed investments in brand, distribution, technology and talent,” said Rajendra Kumar Setia, Managing Director and CEO of SK Finance.

The company demonstrated a compound annual growth rate (CAGR) of over 40% over the six-year period from FY2017 to FY2023. The company has successfully cultivated a diversified lending franchise and is able to secure regular debt capital. The combination of reliable equity financing and this strategic financing approach has helped sustain and strengthen overall growth.

“We are pleased to see that SK Finance has made remarkable progress since our initial investment in 2018 and that the company is now emerging as a scale-up company in the used vehicle and MSME financing space.Developing a robust operating model In addition, the company’s technology-enabled business has increased efficiency,” said Simit Batra, principal at TPG Growth.