A consortium of leading global and Indian investment firms have decided to invest ₹1,700 crore in Chennai-headquartered NBFC Five Star Business Finance Ltd. The small business lender will use the capital to expand its lending business.
The current round of funding came from the existing investors led by Sequoia Capital India and Norwest Venture Partners and new investors like KKR and TVS Capital. A definite agreement was signed with the investors on Thursday, said Five Star Business Finance chief executive officer K. Rangarajan.
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 — Martix Partners and TPG Capital will continue to stay invested.
As of December 2020, the company’s assets under management stood at ₹4,030 crore and gross non-performing assets at 1.29%.
