Spark Capital is pleased to announce the successful closure of a ~INR 2,000 Mn equity round in Ess Kay Fincorp Limited (“EssKay” or the “Company”), through a combination of primary issuance and secondary sale of shares, to Norwest Venture Partners, Baring Private Equity India and Evolvence India Fund. Through this transaction, the existing investor BanyanTree Growth Capital, has completely exited the Company.
Spark Capital acted as the exclusive financial advisor to the Company for the transaction.
With this deal, Spark continues to maintain its leadership position in the BFSI space having consummated 31 transactions aggregating to ~USD 1.75 Bn in value across various sub-segments of the BFSI space.
Mr. Rajendra Setia, Managing Director of EssKay, on the successful closure of the transaction, commented, “EssKay has played a pivotal role in the underserved rural & semi-urban vehicle finance markets. Over the years, we have created a niche for ourselves in used commercial vehicle lending, with our unique strengths in cash flow assessment, credit underwriting and focus on asset quality. It is my great pleasure to invite three marquee investors – Norwest, Baring India and Evolvence as we embark on our next phase of profitable growth. They, along with our 35+ lending relationships, add tremendous strength to our balance sheet and growth plans, as we emerge as a leading player in the used vehicle finance and SME finance segment.”
Abhijit Chiripal, Director & Head of Financial Services at Spark Capital added, “EssKay is well placed to grow its book 5x over the next few years, given its deep rural distribution, continued focus on underpenetrated used vehicles segment and a highly scalable SME lending business. The Company’s unrelenting focus on collections has resulted in EssKay having one of the best asset quality in a seemingly tough customer segment. We were privileged to have worked with the team on the equity raise and wish the company the best in the coming years.”
About EssKay:
EssKay, founded in 1994, provides used vehicle finance and SME (Small and Medium Enterprises) finance to customers in rural and semi-urban India. It funds used CVs/Tractors/Cars and provides business loans to SMEs. EssKay operates through a network of ~240 branches in 6 states has an AUM of ~INR 11 Bn with ~75,000 customers. Through this fund raise, the Company expects to invest into building scale and expanding its operations into new geographies. More information on EssKay can be found at www.skfin.in
About Spark Capital:
Spark Capital is among India’s leading mid-market investment banks, providing a full suite of services encompassing Investment Banking, Institutional Equities, Wealth Management and Structured Finance & Debt Syndication. Spark’s Investment Banking business has successfully consummated a total transaction value of close to USD 6 Bn since inception; Spark Capital’s Institutional Equities division covers over 200 stocks under research and enjoys empanelment with over 200 institutional clients across FIIs, DIIs and Family offices. Spark has offices in Chennai, Bengaluru and Mumbai. Further information is available at www.sparkcapital.in