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NBFC Kogta gets Rs 300 crore in Series C

Creador Advisors and Morgan Stanley PE led the round.

, ET Bureau|
Oct 07, 2019, 08.20 AM IST
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The Series-C round comes about a week after the Pramod Bhasin-led Clix Capital also raised $40 million in fresh financing, led by its largest stakeholder, AION Capital.
NEW DELHI: Creador and Morgan Stanley Private Equity have led a Rs 300 crore funding round in non-banking financial company (NBFC) Kogta Financial, in an indication that risk capital is once again looking to back the country’s shadow banking sector, which has been under stress for the past 12 months.

The Series-C round comes about a week after the Pramod Bhasin-led Clix Capital also raised $40 million in fresh financing, led by its largest stakeholder, AION Capital.

The investment in Kogta Financial is the latest by Brahmal Vasudevan-led Creador in India’s broader financial services sector. Creador had earlier backed Cholamandalam Investment and Finance Co and holds a stake in Bengaluru-headquartered Ujjivan Financial Services.

“The company has demonstrated strong scale-up since the new team took over in 2008, while prudently managing risks, especially in the challenging used commercial vehicle space. With continued focus on secured retail lending, presence in high growth markets, robust IT system and collections mechanism, Kogta is uniquely positioned to thrive in the Indian financial services sector,” Anand Narayan, managing partner at Creador Advisors India, said.

Kogta Financial, which counts IIFL Seed Ventures as its first institutional investor, operates 105 branches in eight states, spread across central and western India. IIFL has, till date, put in about $10 million into the company, having first invested in 2016.

The retail NBFC, which focuses on financing used and commercial vehicles, cars and tractors, as well as loans to SMEs, claims to serve about 30,000 customers, and has a loan book of about Rs 825 crore. “While the NBFC environment has been a tough one for the last one year, Kogta has still managed to attract premium investors, which is a testament to the asset management bets that its team has undertaken,” Amit Mehta, principal at IIFL Asset Management, told ET.
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