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Fri, 30 Nov 2018 | VCCircle
Morgan Stanley PE leads funding round in Jaipur-based lender Kogta

Morgan Stanley PE leads funding round in Jaipur - based lender Kogta

Jaipur-based Kogta Financial (India) Ltd has raised Rs 154 crore ($22 million) in a funding round led by Morgan Stanley Private Equity Asia.

Kogta offers financing for commercial vehicles, tractors and cars, besides small-ticket loans against property to micro, small and medium enterprises.

Morgan Stanley Private Equity Asia had earlier invested in lenders Janalakshmi Financial Services (now Jana Small Finance Bank) and Five Star Business Finance.

In the current transaction, Morgan Stanley Private Equity Asia invested Rs 114 crore for a minority stake, while IIFL Seed Ventures pumped Rs 40 crore into the company, taking the total deal value to Rs 154 crore ($22 million).

IIFL Seed Ventures had earlier invested an undisclosed sum in the company in 2016.  

Kogta will use the current proceeds to expand its operations and enter new geographies.

“With this investment from Morgan Stanley and IIFL Seed Ventures, the company’s net worth will increase to more than thrice the current value,” said Varun Kogta, chief financial officer of Kogta.
Investment bank Equirus Capital acted as the financial adviser to Kogta on this transaction.

Kogta operates in Delhi, Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh through 80 branches.

As on 30 September, the company had a loan book of around Rs 530 crore.