Indian lender DMI Finance raises $230m from Europe’s New Investment Solutions

Non-banking financial company DMI Finance Pvt. Ltd has raised $230 million from European asset management firm New Investment Solutions (NIS).

The Liechtenstein-based firm founded by Takashi Sato, which has invested in the firm earlier as well, will remain the majority shareholder of DMI Finance.

Founded by former Wall Street bankers Shivashish Chatterjee and Yuvraj C. Singh, DMI is an India-focused financial services platform engaged in corporate lending, housing finance, consumer finance and asset management.

The latest funding is said to have taken the total amount of equity capital raised by the Indian lender to $700 million till date since its inception in 2008. The company claims to have around $852 million assets under management currently.

The Burman family, which owns FMCG major Dabur, holds a minority share in DMI Finance.

The Delhi-based company plans to use the funds to grow its digital and consumer finance businesses as well as its mortgage lending business, DMI Housing Finance Pvt. Ltd.

“DMI intends to be the credit partner of choice in the rapidly-growing retail and MSME credit segments. Raising $230 million of equity in a tough environment for NBFCs is meant to underscore that commitment,” co-founder Shivashish Chatterjee said.

“With others facing balance sheet pressure, given the lack of liquidity, we feel now is a good time to make further investments in the business and hopefully grab market share,” added DMI co-founder and joint managing director Yuvraj Singh.

NIS has invested $2 billion globally in equity, debt and alternative assets. Its investors include institutions, ultra high net-worth individuals and large family offices in Japan, Asia and Europe.

Despite the recent turmoil in the NBFC space owing to mounting non-performing assets, companies in this space have been attracting growing investor interest.

Another NBFC Samunnati was recently reported to be in talks with private equity players to raise up to $70 million. In November last year, Kogta Financial (India) Ltd, a retail-focused NBFC, closed an equity funding round of Rs 154 crore ($22 million) led by a fund managed by Morgan Stanley Private Equity Asia and existing investor IIFL Seed Ventures.

Veritas Finance Pvt Ltd, too, announced raising Rs 200 crore in a Series D investment round led by private equity firm Norwest Venture Partners, with participation from existing investors CDC Group Plc and UK’s Development Finance Institution, and anchor investor P. Surendra Pai.

In October, IIFL India Private Equity Fund invested Rs 100 crore ($13.5 million) in KadaiEshwar (KE) Housing Finance. A month prior, New Delhi-based Satya MicroCapital raised $6.2 million (Rs 43 crore) in a round of funding led by Japan’s Gojo & Company, along with existing investor Dia Vikas Capital.

Also, TPG Growth, a middle market and growth investment fund, led a $42-million investment in Jaipur-based non-banking finance company Ess Kay Fincorp Ltd.  Existing investors Norwest Venture Partners and Evolvence India Fund II Ltd also participated in the financing.

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