Ontario Teachers invest Rs 1,230 cr in Kogta NBFC
Funds raised as primary capital will be used to drive growth across product offerings and expand regional presence
Mumbai: Ontario Teachers' Pension Plan Board on Wednesday announced Rs 1,230 crore investment in Kogta Financial for a significant minority stake in the non-bank lender.
The investment in the Non-bank Finance Company (NBFC) specialising in vehicle and small business finance is a combination of primary and secondary investment, an official statement said. The funds raised as primary capital will be used to drive growth across product offerings and expand regional presence, while the secondary capital will provide partial exits to Kogta's existing institutional investors Morgan Stanley and Creador, it said. Started in Rajasthan in 1996, the NBFC has now expanded across 10 States in India with over 225 branches and has 5,000 employees on its rolls.
It has Rs 4,800 crore of assets under management (AUM) across commercial vehicles, passenger vehicles, tractors, construction equipment and MSME loans. Since getting the first institutional investment in 2016, its AUM has grown over 40 per cent every year. Rahul Mukim will be joining as the new investor's nominee on the company board. "Our investment in Kogta underscores our commitment to identifying and backing high-growth opportunities in India's vibrant financial services sector," Head of India for Ontario Teachers' Deepak Dara said.
"Their experience would help Kogta navigate the next phase of its growth journey, deepening its reach across chosen geographies and product segments," the company's managing director and chief executive Arun Kogta said. Kotak Investment Banking acted as the exclusive financial advisor on the deal.