One of India’s leading lenders to small businesses, Five Star Finance, has raised US$234 million (INR17 billion) from a consortium of leading global and Indian investment firms.
The round was led by existing investors Sequoia Capital India, with participation from Norwest Venture Partners, as well as new investors, led by KKR with participation from TVS Capital. The investment values the company at US$1.4 billion (INR103 billion).
Five Star plans to use the capital to expand its lending business to provide much-needed financing solutions to more of India’s small businesses, which comprise a large and growing segment of the country’s economy.
The investment will be made through a combination of primary infusion in the company and secondary shares sold by existing investor Morgan Stanley Private Equity. The company’s other existing investors – Matrix Partners and TPG Capital – continue to stay invested.
Source: YourStory
By Palak Agarwal
