Arka Fincap (Kirloskar Group) secures initial investment of Rs 525 cr from TPG's The Rise Funds

 Arka Fincap (Arka), a Kirloskar Group-promoted non-banking financial company (NBFC), announced it has signed definitive agreements with The Rise Funds, TPG's multi-sector global impact investing strategy. The strategic investment comprises an initial investment of Rs 525 crore, with the potential for an additional Rs 275 crore through a subsequent tranche, subject to the achievement of specified business milestones aligned with Arka's growth strategy and requisite regulatory approvals.

The investment marks a significant milestone in Arka's evolution into a diversified, secured retail lending institution. From its inception in 2018, the company has grown in scale and has built a stable and sustainable business. Over the past 18 months, the company has strengthened its leadership, built a pan-regional distribution network and incubated new secured lending businesses towards delivering value to all stakeholders. Today, with an AUM of ~ Rs 8,000 crore and a presence across ten states through 146 branches, Arka is building a broader and more granular lending franchise, while continuing to leverage its established wholesale lending platform.

The investment from TPG will provide growth capital to support the evolution of the business through deepening its geographical reach and accelerating investments in technology and risk management capabilities. With TPG's extensive sector experience and innovative approach towards building and scaling successful financial institutions, together with Kirloskar Group's long term institutional commitment, deep understanding of the geography and the customer, Arka is well positioned to capitalise on the vast opportunity in India's secured lending market.