India: TPG Growth leads $42m financing round in NBFC Ess Kay Fincorp

Photo: Reuters

TPG Growth, a middle market and growth investment fund, on Wednesday announced that it has led a $42-million investment in Jaipur-based non-banking finance company Ess Kay Fincorp Ltd, according to media reports.

Existing investors Norwest Venture Partners and Evolvence India Fund II Ltd are investing alongside TPG Growth.

Earlier this month, The Economic Times had reported that TPG had placed the highest bid to acquire around a 30 per cent stake in Ess Kay Fincorp, valuing it at around Rs1,150 crore. Other PE funds including ChrysCapital, Creador Capital and Goldman Sachs were also reportedly in the fray to invest up to Rs 600 crore in the firm for a significant minority stake.

This is the second funding round for Ess Kay this year. In January, US-based Norwest, Baring Private Equity India and Evolvence India had led a $32-million equity investment in the NBFC.

Founded in 1994 by Rajendra Setia, Ess Kay Fincorp provides vehicle finance and SME finance in rural and semi-urban India. It helps purchases of used commercial vehicles, tractors, cars, two-wheelers and also provides business loans to SMEs. The company currently has a network of 226 branches spread across the states of Rajasthan, Gujarat, Punjab, Haryana, Madhya Pradesh and Maharashtra, according to its website.

Founded in 2007, TPG Growth invests in companies across the U.S., Europe, Africa, and Asia. It currently manages approximately $13.5 billion in assets across a variety of sectors including media, technology, and industrials, according to its website. The investment in Ess Kay is one of the many made by TPG in India this year.

In September, the private equity firm acquired a significant minority stake in RR Kabel Ltd, a Mumbai-based maker of building wires and low-voltage cables, for an undisclosed amount.

In July, TPG signed a definitive agreement to lead an investment of $100 million in Five Star Business Finance Ltd, a small business financing company focused on South India. The same month, it invested about $135 million for a significant minority stake in Hyderabad-based Sai Life Sciences, and infused $100 million into Bigtree Entertainment Pvt. Ltd, which owns and operates online entertainment ticketing platform BookMyShow, along with other investors.

TPG was recently in the news for initiating talks to buy a majority stake in hospital operator Medanta from heart surgeon Naresh Trehan and other investors after a failed Fortis bid. The firm has also reportedly submitted bid to buy beleaguered Indian carrier Jet Airways’ stake in its frequent flyer loyalty programme.

In September, the private equity firm also appointed its senior adviser Shailesh Rao as India head.

Also Read:

India: Manipal-TPG group in talks to buy Medanta stake after failed Fortis bid

TPG, Blackstone said to submit bids for Jet Airways’ stake in loyalty programme

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.