The fund managed by Morgan Stanley Private Equity Asia invested around ₹114 crore for a minority stake, while IIFL Seed Ventures, Kogta’s first institutional investor, invested ₹40 crore.
Equirus Capital acted as the financial advisor for the transaction.
The funds raised will be used to expand operations and foray into new geographies.
Founded in 1996, Kogta Financial offers financing to customers, providing commercial vehicle loan, car loan, tractor loan, two wheeler loan, MSME loan, and loan against property.
Talking about the investment, Varun Kogta, Chief Financial Officer, said, “With this investment from Morgan Stanley and IIFL Seed Ventures Fund, the company’s net worth will increase to more than thrice the current value, thereby considerably strengthening our balance sheet, which will help further enhance conviction of credit rating agen cies and lenders.”
The NBFC has a network of over 65 branches, serving more than 50,000 customers, across six states in India, including Rajasthan, Madhya Pradesh, Gujarat, Maharashtra, Uttar Pradesh, and Delhi.
Previously in October 2016, Kogta Financial raised series A funding led by IIFL Seed Fund.