Bombay Stock Exchange and and National Stock Exchange-listed Magma Fincorp Ltd., an Indian provider of financial products including financing of Utility Vehicles & Cars, Commercial Vehicles, Construction Equipments, Tractors and SME Loans, received an Rs 4400m investment.
The financing was led by funds advised by Kohlberg Kravis Roberts & Co. L.P. (along with its affiliates, KKR) and International Finance Corporation (IFC), whose investment is still subject to the approval of the Board of IFC, shareholders of Magma and relevant regulatory authorities.
Magma intends to use the funds to accelerate its growth plans in existing businesses in addition to newer areas. It has signed a joint venture with HDI Gerling (Talanx Group), a Germany-based insurance group, to start a general insurance company in India, which has already received R1 license from the insurance regulator.
Magma is a non-deposit taking non-banking finance company (NBFC), registered with the Reserve Bank of India (RBI) as an Asset Finance Company. It provides financial products to a dedicated base of over 2.36 lac customers and has assets of Rs. 10,907 crores under management.
The company has 171 branches in 20 states and 1 union territory and employs about 5,150 people.