Arka Fincap Ltd, a Kirloskar-backed non-banking financial company (NBFC), has signed definitive agreements with The Rise Funds, TPG’s multi-sector global impact investing strategy, for a strategic investment to accelerate its growth and retail lending transformation.
The investment comprises an initial infusion of ₹525 crore, with the potential for a further ₹275 crore through a subsequent tranche. The additional investment will be subject to specified business milestones aligned with Arka’s growth strategy and requisite regulatory approvals.
Investment to support retail transformation
The investment marks a milestone in Arka’s evolution into a diversified, secured retail lending institution. The company plans to expand its retail lending franchise while continuing to leverage its established wholesale lending platform.
Founded in 2018, Arka has built a lending business with assets under management (AUM) of ₹8,000 crore. It operates across 10 States through a network of 146 branches.
Secured retail assets cross ₹1,000 crore
The company said its secured retail assets have crossed ₹1,000 crore, marking progress in its strategy to build a broader and more granular lending portfolio.
“As a Group, we have always placed great value on enduring partnerships and the institution-building ethos of creating businesses that stand the test of time. We seek partners who share this philosophy, and we see a strong alignment with TPG’s approach,” Kirloskar Oil Engines Ltd, Vice Chairperson and Managing Director, Gauri Kirloskar, said.
Focus on technology-led lending
“At Arka, we believe resilient financial institutions are built on capital anchored in character, customer servicing and unwavering tech-led credit discipline. Crossing ₹1,000 crore in secured retail assets is a defining milestone in our ambition to build a formidable, future-ready financial enterprise, serving entrepreneurial aspirations of our country,” Arka Fincap, Managing Director, Samrat Gupta, said.
TPG targets underserved segments
“Many of India’s MSMEs and vehicle operators remain underserved by formal financial services, and Arka has built a disciplined, secured retail lending platform to serve these customers, with the potential to reach even more customers at scale,” TPG, Business Unit Partner, Simit Batra, said.
The Rise Funds invests in growth-stage, mission-driven businesses with the potential to deliver measurable impact alongside financial performance.
Arka offers financing solutions across pre-owned vehicle loans, secured business loans, loans against property and wholesale lending.