Kirloskar Oil Engines arm Arka Fincap signs ₹800 crore investment deal with TPG

Detailed summary

Kirloskar-backed Arka Fincap has signed definitive agreements with TPG's The Rise Funds for an investment of up to ₹800 crore to expand its secured retail lending business.

Kirloskar Oil Engines-backed Arka Fincap has signed definitive agreements with TPG's The Rise Funds for an investment of up to ₹800 crore across two tranches, as the non-banking financial company (NBFC) looks to accelerate its growth and expand its secured retail lending business.

The investment comprises an initial ₹525 crore, with the potential for an additional ₹275 crore through a subsequent tranche, subject to the achievement of specified business milestones and requisite regulatory approvals, Arka said in a statement on Saturday, November 7.

The capital infusion will support Arka's expansion into new geographies, while accelerating investments in technology and risk management capabilities. The partnership is aimed at building a scaled, diversified and secured retail-led financial institution.

Founded in 2018, Arka has built assets under management (AUM) of around ₹8,000 crore…

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