A consortium of leading global and Indian investment firms has decided to invest Rs 1,700 crore in Chennai-headquartered NBFC Five Star Business Finance Limited. The small business lender will use the capital to expand its lending business.
The current round of funding came from Sequoia Capital India and Northwest Venture Partners and existing investors led by new investors such as KKR and TVS Capital. A definitive agreement was signed with investors on Thursday, Chief Executive Officer of Five Star Business Finance. Rangarajan said.
The investment will be made through a combination of primary infusion into the company and secondary shares sold by existing investor Morgan Stanley Private Equity. Other existing investors of the company – Martix Partners and TPG Capital will remain on the investment.
As of December 2020, the company’s assets under management stood at ₹ 4,030 crore and gross non-performing assets at 1.29%.
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