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NEW DELHI: :Berar Finance Ltd, which runs a two-wheeler-focused financing unit, has raised ₹100 crore($13 million) in an equity round of funding led by Denmark-based private equity fund Maj Invest.
NEW DELHI: :Berar Finance Ltd, which runs a two-wheeler-focused financing unit, has raised ₹100 crore($13 million) in an equity round of funding led by Denmark-based private equity fund Maj Invest.
The company’s existing investor Amicus Capital also participated in the current investment round, as per a press statement.
The company’s existing investor Amicus Capital also participated in the current investment round, as per a press statement.
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The firm plans to utilise the fresh capital to expand its branch network, besides diversifying its product offering into small ticket secured small and medium enterprises (SME) loans.
“Berar Finance has established itself as one of the leading two-wheeler financers with a differentiated business model focused towards rural and semi-urban locations. The current round of capital raise will accelerate the Company’s objective of providing access to credit in these markets as it looks to expand its branch network as well as enter into new product segments,” said Sandeep Jawanjal, MD at Berar Finance.
Berar Finance, which was set up by Maroti G Jawanjar in 1990, claims to have a loan book of ₹900 crore. It has a network of 105 branches spread across the six states of Maharashtra, Chhattisgarh, Madhya Pradesh, Gujarat, Karnataka and Telangana. It is one of the select non-banking financial companies (NBFCs) in India with a license from the Reserve Bank of India (RBI) to accept retail deposits from public.
Apart from two-wheeler loans, Berar Finance also provides financing for cars, commercial vehicles and agriculture equipment. In February 2020, mid-market growth capital firm Amicus Capital had invested ₹70 crore in Berar Finance.
“We are looking forward to working closely with Berar Finance to enable their mission of providing affordable finance to customers in rural and semi-urban areas to improve their access to mobility. Berar has a unique business model and has a solid market positioning in credit underpenetrated districts of central India,” said David Paradiso, Partner at Maj Invest said.
With regional offices in India and Peru, Maj manages assets worth $18 billion, of which around $2 billion are in private equity commitments. Maj Invest Financial Inclusion funds are sector-focused, closed-end private equity funds investing growth capital directly into financial institutions across Asia, Latin America and Africa.
Some of its previous bets in India are banking correspondence firms SAVE Solutions Pvt. Ltd, BASIX Sub-K iTransactions, and microlender Aye Finance.
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