Kogta Financial, specializing in vehicle finance and MSME loans, has secured a Series E investment of $148 million from Ontario Teachers’ Pension Plan, a leading Canadian pension fund. This investment grants Ontario Teachers’ a significant minority stake in the Jaipur-based NBFC.
The primary capital raised will fuel expansion across Kogta’s product offerings and geographical footprint, while also facilitating partial exits for existing institutional investors such as Morgan Stanley Private Equity Asia and Creador, backed by Multiples Alternate Assets Private Ltd.
Ontario Teachers’ nominee, Rahul Mukim, Director of Private Capital for India, is set to join Kogta’s board as part of this investment. Kotak Investment Banking served as the financial advisor for the transaction.
Arun Kogta, MD and CEO of Kogta, expressed enthusiasm about the partnership, highlighting Ontario Teachers’ expertise in bolstering Kogta’s growth trajectory in India’s financial services sector. The investment underscores confidence in Kogta’s robust business model, focused on asset quality, technology integration, and talent development.
Deepak Dara, Senior Managing Director at Ontario Teachers’, emphasized their commitment to supporting high-growth opportunities in India’s financial sector, particularly in underserved segments like used vehicle and livelihood financing. The investment aligns with Ontario Teachers’ strategy of backing strong management teams in businesses with competitive advantages.
Cindy Yan, Senior Managing Director at Ontario Teachers’, reiterated their focus on financial services and non-banking lending sectors globally, expressing support for Kogta Financial’s mission to provide financing solutions to India’s vehicle and MSME sectors.
Arjun Saigal, Managing Director and Co-Head of Morgan Stanley PE Asia, noted the evolution of Kogta into a leading player in vehicle finance since their initial investment, welcoming Ontario Teachers’ as a strategic addition to Kogta’s investor base.
Established in Rajasthan in 1996, Kogta Financial has expanded its presence to 10 states in India, operating over 225 branches with more than 5,000 employees. The company manages assets worth Rs 4,800 crore across various sectors including commercial vehicles, passenger vehicles, tractors, construction equipment, and MSME loans. Since its first institutional investment in October 2016, Kogta has demonstrated rapid growth with a 40% CAGR in assets under management.
