Arka Fincap raises Rs 525 Cr from The Rise Funds of TPG

Arka Fincap Limited, a Kirloskar Group-promoted non-banking financial company (NBFC) has raised an initial investment of Rs 525 crore from The Rise Funds, the global impact investing arm of TPG.

A statement said this agreement could also lead to 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 from TPG will provide growth capital for Arka to expand its geographical reach and accelerate investments in technology and risk management capabilities.

Founded in 2018, Arka is a diversified retail lending institution with an assets under management (AUM) of over Rs 8,000 crore and a presence across ten states through 146 branches.

On the funds raised, Gauri Kirloskar, Vice Chairperson and Managing Director, Kirloskar Oil Engines Limited, said “As a Group, we have always placed great value on enduring partnerships and the institution-building ethos of creating businesses that stand the test of time. We seek partners who share this philosophy, and we see a strong alignment with TPG’s approach.”

Arka offers a diversified portfolio of financing solutions spanning pre-owned vehicle financing, secured business loans, loan against property and wholesale lending. The company serves entrepreneurs, MSMEs, vehicle operators and corporate clients through a combination of specialised lending businesses and a growing distribution network.

Samrat Gupta, Managing Director, Arka Fincap Limited, said, “Crossing Rs 1,000 crore in secured retail assets is a defining milestone in our ambition to build a formidable, future-ready financial enterprise, serving entrepreneurial aspirations of our country.”

Simit Batra, BU Partner, TPG, said, “Many of India’s MSMEs and vehicle operators remain underserved by formal financial services, and Arka has built a disciplined, secured retail lending platform to serve these customers, with the potential to reach even more customers at scale.”

Founded in 2016 by TPG in partnership with Bono and Jeff Skoll, The Rise Funds invest behind impact entrepreneurs and growth-stage, high-potential companies.