Jaipur-based non-banking financial company Kogta Financial has raised INR 154 crores in a funding round led by Morgan Stanley Private Equity and existing investor IIFL Seed Ventures. The New York-based investment bank’s Asia focused fund Morgan Stanley Private Equity Asia has invested INR 114 crores while IIFL Seed Venture invested INR 40 crores in the firm.
The firm was advised by Equirus Capital for the transaction. Kogta plans to use the freshly raise capital to expand operations to new geographies. Founded in 1996, the firm provides commercial vehicle loan, tractor loan, car loan, MSME loan, two wheeler loan and loan against property.
Talking about the investment, Varun Kogta, Chief Financial Officer, said, “With this investment from Morgan Stanley and IIFL Seed Ventures Fund, the company’s net worth will increase to more than thrice the current value, thereby considerably strengthening our balance sheet, which will help further enhance conviction of credit rating agencies and lenders.”
The NBFC has 65 branches and serves more than 50,000 clients across six Indian states including Madhya Pradesh, Gujarat, Maharashtra, Rajasthan, Delhi and Uttar Pradesh. Earlier in October 2016, the firm raised undisclosed funds in series A round from IIFL Seed Ventures.
Kogta Finance competes with Vistaar Finance, Veritas Finance, Ess Kay Fincorp and Capital First. Veritas Finance raised INR 200 crores in a series D round from Norwest Ventures earlier in November this year. Ess Kay Fincorp also raised INR 310 crores from TPG Growth.