Global private equity major KKR, Indium V and LeapFrog Investments will invest Rs 500 crore in Magma Fincorp Limited, the non-banking finance company (NBFC). On Monday, Magma Fincorp's Board of Directors have approved preferential allotment of equity shares worth Rs 500 crore ($80 million)
Indium, an investment vehicle advised by India Value Fund Advisors and LeapFrog, both new investors in the company, will invest Rs 220 crore and Rs 200 crore , respectively while KKR, which first invested in Magma in 2011, will inject an additional Rs 80 crore.
“The investors are providers of long-term strategic capital that can help Magma attain the next level of growth," said Sanjay Chamria, Vice Chairman & MD of Magma.
“We continue to believe that rural and semi-urban financial inclusion will be a key element of this growth and Magma is a unique platform that can actively drive this financial inclusion,” said Sanjay Nayar, Member & CEO of KKR India.
Magma provides financing of utility vehicles & cars, commercial vehicles, construction equipment, used commercial vehicles, tractors and SME loans. It also operates in affordable housing finance and general insurance segments. Magma has a base of around half a million active customers.