Ess Kay raises Rs 337 crore from existing investors, promoter

Used vehicles and small businesses-focused lender Ess Kay Fincorp on Thursday announced that it has raised Rs 337 crore from PG Growth, Norwest Venture Partners, Evolvence and promoter Rajendra Setia in a new round of funding.

TPG Growth, Norwest Venture Partners and Evolvence are existing investors in the company and with this round, the overall capital raised from external investors has breached the Rs 1,000 crore mark, an official statement said.

"Over the years, we have created a niche positioning for ourselves in the rural and 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," Setia, who is also the managing director of the company, said.

Akshay Tanna, a partner at TPG, said this is the third investment of the global private equity fund in the company in the last two-and-a-half years and added that its model bridges the large credit gap that exists for un-banked and under-banked populations in India.

Norwest India's managing director Nirav Shah said 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.