IPO-bound SK Finance raises Rs 1,328 cr in fresh round led by Norwest, TPG, MO Alts, Baring PE

SK Finance is looking to raise $250-300 million via its upcoming IPO

SK Finance Ltd, an IPO-bound NBFC engaged in used and new vehicle financing, has completed a fresh fundraise of Rs 1,328 crore from existing investors, including Norwest Venture Partners, TPG Growth and Baring Private Equity India.

Apart from them, incoming investors namely Duro Capital, Axis Alternatives, Ananta Capital and Mirae Asset Venture Investments (India) also decided to pump funds into the company.

Motilal Oswal’s private equity firm – MO Alternate Investment Advisors (MO Alts) was among the participants in this larger fundraise as an incoming investor, investing Rs 415 crore for a minority stake, according to an official statement.

The fundraise was a combination of primary and secondary capital, the statement added.

On December 5, Moneycontrol was the first to report that the Jaipur-based SK Finance (earlier called Ess Kay Fincorp) had kick-started preliminary discussions to float an initial public offer (IPO) in 2024 and raise around $250 million to $300 million (Rs 2,092 crore to Rs 2,511 crore).

The investments by the company's existing investors "fortify the conviction placed by them on our business model and our team", SK Finance's managing director and CEO Rajendra Kumar Setia said.

"This primary capital infusion will help accelerate our growth through proposed investments in brand, distribution, technology and people," he added.

Founded by Setia in 1994, SK Finance has a diversified product portfolio consisting of commercial vehicle loans, car loans, tractor loans, two-wheeler loans and secured business loans.

The company has grown at a 6-year CAGR (FY17-23) of over 40 percent and has developed a diversified lending franchise which has helped it raise debt capital at regular intervals.