India: PE biggie KKR said to be investing $50m in NBFC Svakarma Finance

REUTERS/Brendan McDermid

Private equity biggie KKR is close to acquiring a majority stake in Svakarma Finance, a non-banking finance company (NBFC) headquartered in Mumbai, a TOI report stated, quoting sources.

The deal size is estimated to be $50 million, the report further stated.

The funding will help recapitalise the NBFC that was established in 2017 by former Citibank executives including Vivek Vig and Kalpana Iyer.

Svakarma Finance, an impact focused NBFC, supports micro, small and medium enterprises (MSMEs) in semi-urban and rural areas. Going forward, it aspires to cater to over 100,000 entrepreneurs across the country.

For KKR, on the other hand, the proposed investment will help expand its loan book and go beyond its focal area of corporate lending as the firm adopts measures to increase its investments in the NBFC space.

KKR India, which is one of the oldest PE investors in the country, has been experimenting with investments in the Indian credit market for long. Currently, it is also scouting for acquisitions of local non-bank financiers as the liquidity squeeze post ILFS crisis late last year has opened up opportunities for the investor fraternity overall.

Further, KKR also operates as a non-bank financier itself through its units KKR India Financial Services and KKR India Asset Finance.

In the over financial services space, KKR’s portfolio companies in India include insurance major SBI Life and billionaire Analjit Singh-led Max Financial, the holding company of Max Life Insurance.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.