Latest News | Five Star Business Finance to Get Funding of Rs 1,700 Cr from New, Existing Investors
Get latest articles and stories on Latest News at LatestLY. Five Star Business Finance Limited, a non-banking finance company catering to small businesses, on Friday said a consortium of global and domestic investors will invest Rs 1,700 crore in the company.
New Delhi, Mar 26 (PTI) Five Star Business Finance Limited, a non-banking finance company catering to small businesses, on Friday said a consortium of global and domestic investors will invest Rs 1,700 crore in the company.
A consortium of leading global and Indian investment firms announced the signing of definitive agreements to invest USD 234 million (Rs 17 billion) in Five Star Business Finance Limited (Five Star), a company release said.
The round included investment by existing investors – led by Sequoia Capital India with participation from Norwest Venture Partners – as well as new investors, led by KKR with participation from TVS Capital. The investment values company at USD 1.4 billion, it said.
The investment will be made through a combination of primary infusion in the company and secondary shares sold by existing investor Morgan Stanley Private Equity.
Other existing investors - Martix Partners and TPG Capital - continue to stay invested.
Five Star plans to use the capital to expand its lending business to provide much-needed financing solutions to more of India's small businesses, which comprise a large and growing segment of the country's economy, it said.
The investment sees existing investors Sequoia Capital India and Norwest strengthen their commitment to the company, D Lakshmipathy, Chairman and Managing Director, Five Star said.
The Chennai-headquartered NBFC (Non-banking financial company) has 262 branches across eight states in the southern and central part of the country.
As of 31st Dec 2020, the company's AUM ( assets under management)
stood at Rs 4,030 crore and gross NPA (non-performing asset) stood at 1.29 per cent.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)