Spark Capital (“Spark”) acted as the exclusive financial advisor to the transaction

Spark is pleased to announce that a consortium of leading global and Indian investment firms has signed definitive agreements to invest US$234 million (INR17 billion) in Five-Star Business Finance Limited (“Five Star” or the “Company”). The investment will be made through a combination of primary infusion in the Company and secondary shares sold by existing investor Morgan Stanley Private Equity. The round included investment by existing investors in the Company – led by Sequoia Capital India with participation from Norwest Venture Partners – as well as new investors, led by KKR with participation from TVS Capital. The investment values the Company at US$1.4 billion (INR103 billion).

With this transaction, Spark has successfully completed its 6th transaction in small business financing space with a total transaction value of ~USD 500 Mn

Spark also continues to maintain its leadership in the BFSI space having consummated 46 transactions aggregating to ~USD 3.2 Bn. In the last 12 months, Spark has completed 7 transactions in the BFSI space aggregating to ~USD 660 Mn

D. Lakshmipathy, Chairman and Managing Director, Five Star remarked, “This is the third time we are working with Spark Capital on our fund raise. Spark continues to deliver its promises well. They stay through the entire course of the deal and are able and willing to address the many challenges that any deal may go through. We thank Spark for the good work that they have done and wish them well.”

Abhijit Chiripal, Executive Director & Head Financial Services, Spark Capital remarked “It has been a privilege for Spark to be a part of this incredible journey at Five Star - from being a promising company to being a bell weather for the sector. We wish the best for Mr. Lakshmipathy and the team at Five Star as they scale new peaks of success."