TPG investment in Kirloskar-backed Arka Fincap: What the deal entails and how funds will be used
Detailed summary
Arka Fincap has secured an initial investment of ₹525 crore from TPG to expand its retail lending and technology operations.
Kirloskar Group-backed non-banking financial company (NBFC) Arka Fincap's investment agreement with global alternative asset management firm TPG involves an initial capital infusion of ₹525 crore, with the possibility of an additional ₹275 crore subject to specified business milestones and regulatory approvals.
The investment is being made through TPG's The Rise Funds, its impact investing platform. According to Arka's November 6 statement, the capital will support the company's expansion in secured retail lending, strengthen its geographical presence and fund investments in technology and risk management capabilities.
The agreement provides for an initial investment of ₹525 crore. TPG may invest another ₹275 crore through a subsequent tranche, subject to Arka achieving specified business milestones and obtaining the necessary regulatory approvals.
The company has not disclosed the…
Opening of the article, excerpted from CNBC-TV18. To read the rest, open the article on the publisher's site.
MarketNews shows the headline and summary published by the outlet. The full article is on the publisher's website. (www.cnbctv18.com)
