Mumbai: Kogta Financial, a retail focused non-banking financial company, on 26 June, said it raised $148 million in a Series E investment led by Ontario Teachers’ Pension Plan.
In a statement, the company said that it will use the fresh funds as primary capital to grow its product offerings and expand regional presence. With this round, Kogta will also provide partial exits to its existing institutional investors Morgan Stanley and Creador.
Founded in 1996 by Banwari Lal Kogta, Bal Mukund Kogta, and Radha Krishan Kogta, the company is currently steered by Arun Kogta, managing director and chief executive officer, Varun Kogta, executive director and chief finance officer, and Nayan Kogta, chief operating officer of the company. The NBFC functions in the secured vehicle and MSME financing space and has now expanded across 10 states in India with over 225 branches and more than 5,000 employees.
“This is a significant milestone for the company, and we are pleased to welcome aboard Ontario Teachers’. Their experience would help Kogta navigate the next phase of its growth journey, deepening its reach across chosen geographies and product segments. We believe the investment by Ontario Teachers’ is a stamp of confidence for the underlying business model built over the years,” said Arun Kogta, in the statement.
Kogta’s Growth Surge
According to Kogta, it currently manages close to ₹4,800 crore across commercial vehicles, passenger vehicles, tractors, construction equipment and MSME loans.
As part of the investment, Rahul Mukim, director of private capital, India, is slated to join the board of Kogta as the nominee of Ontario Teachers’ Pension Plan.
“Our investment in Kogta underscores our commitment to identifying and backing high-growth opportunities in India’s vibrant financial services sector. The used vehicle and livelihood financing segment is significantly underpenetrated, and Arun and Varun have built a scalable business model with a strong focus on asset quality, deep technology orientation, and talent. We are excited to partner with them to further accelerate their growth trajectory,” said Deepak Dara, senior managing director and head of India for Ontario Teachers’ Pension Plan.
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Published: 26 Jun 2024, 05:20 PM IST