Kogta Financial raises Rs. 300 crore in Series C round
Kogta Financial (India) Limited, a Jaipur-based non-banking financial company (NBFC), has raised Rs. 300 crore in Series C round of funding. The investment comes from private equity investor Creador and existing investor Morgan Stanley Private Equity. Kogta has been helping small businesses as well as road transporters with commercial vehicle loans for more than a decade. Here's all about it.
Kogta Financial and its lending business
Founded in 1996, Kogta Financial operates as many as 105 branches across central and western India. The company offers loans for new and used commercial vehicles such as cars, tractors, etc, and has a loan book of about Rs. 825 crore. It has over 30,000 active customers who are mostly farmers, small road transporters, cab drivers and people from weaker sections of society.
Kogta uniquely positioned to thrive in financial sector, says investor
Anand Narayan, the Managing Partner of Creador, claimed that Kogta has strong business operations as well as risk management procedures and that they were confident about investing in the company. He further added, "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."
Meanwhile, here's a look at the previous investments in Kogta
Kogta Financial has raised over Rs. 500 crore from multiple investors since its inception and its valuation now stands at around Rs. 1,300 crore. The company's previous investment came from US-based Morgan Stanley Private Equity which infused Rs. 154 crore in it. Before that, it had raised an undisclosed amount of funding from IIFL Seed Ventures Fund, which is also the company's first investor.
How the company will utilize the funds?
With the fresh funds, the Kogta Financial will scale up its operations and connect with more small businesses. The company also plans to expand the business to more states and sustain its asset quality.
