Multiples PE leads $111 mn funding in Kogta Financial as IIFL exits

 Multiples PE leads $111 mn funding in Kogta Financial as IIFL exits

Indian alternative investment firm Multiples Private Equity is leading a Rs 846 crore ($111 million) Series D round of funding in non-bank lender Kogta Financial (India) Ltd.

Canada Pension Plan Investment Board and existing investors, Morgan Stanley Private Equity Asia and Creador, also participated in this round, Kogta said Thursday.

The lender said it will use the funds to support growth across products and regions and also to provide a full exit to its first institutional investor in Series A, IIFL Seed Venture Fund.

Kogta, which focuses on secured retail vehicle loans and MSME financing segment, said it has assets under management of more than Rs 2,000 crore across commercial vehicles, passenger vehicles, tractors, and MSME loans.

Arun Kogta, MD and CEO of Kogta, said the company’s AUM has doubled during the last two years despite the Covid-19 pandemic and that it aims to grow to Rs 5,000 crore in the next two years.

Started in Rajasthan, Kogta has now expanded across eight states with more than 175 branches. The company says it has clocked an annualized growth rate of more than 50% since its first institutional investment in October 2016.

The company had raised Rs 154 crore from Morgan Stanley PE (Rs 114) and IIFL (Rs 40 crore) in November 2018. It then snagged Rs 300 crore in a Series C found led by Creador in October 2019.

Kotak Investment Banking was the exclusive financial advisor to the Series D transaction.

Sumit Upadhyaya

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