Wikipedia

SK Finance

SK Finance Limited
FormerlyEss Kay Fincorp
Company typePrivately held company (Going through IPO)
IndustryNon-banking financial company
Founded1994; 31 years ago (1994)
FounderRajendra Setia
Headquarters
Jaipur, Rajasthan
,
India
Area served
India
Key people
Amar Lal Daultani (Chairperson)
Rajendra Setia (MD & CEO)
Number of employees
9,600+
Websitewww.skfin.in

SK Finance (formerly Ess Kay Fincorp) is an Indian non-banking financial company (NBFC) founded in 1994[1] and headquartered in Jaipur, Rajasthan.[2] It is engaged in vehicle financing and lending to Micro, Small and Medium Enterprises (MSMEs).[3][4]

In 2024, the company received regulatory approval from the Securities and Exchange Board of India (SEBI) to launch an Initial Public Offering (IPO).[5][6]

History and operations

[edit]

SK Finance was established in 1994 by Rajendra Kumar Setia.[7] The company began with a focus on vehicle financing and later diversified into asset-backed lending to self-employed individuals, with operations extending to rural and semi-urban regions.[8][9] It is licensed by the Reserve Bank of India (RBI)[10] and classified under the middle layer (NBFC-ML) as per the RBI's regulatory framework.[11][12]

As of September 2024, SK Finance had over 650 branches across 12 states and union territories in India, with over half located in rural and semi-urban regions.[13]

As of 2025, SK Finance reported a loan book of ₹13,261 crore, an increase of 27 percent over the previous year. The company has filed for an IPO to raise Rs. 2,200 crore,[14] including Rs. 500 crore through a fresh issue and Rs. 1,700 crore through an offer for sale.[15] SK Finance is also expanding its business in the Small and Medium Enterprise (SME) lending segment.[16]

As of June 2025, the company reported assets under management of about ₹13,668 crore. It also disclosed that income and disbursements had risen compared with the same period of the previous year.[17]

Funding and investors

[edit]

In 2020, SK Finance raised Rs. 86 crore in debt funding from responsAbility Investments AG.[18]

In May 2021, the company raised Rs. 337 crore (about US$45 million) in a Series E fundraising round from investors including TPG Growth, Norwest Venture Partners, and Evolvence India.[19] In December 2021, the company secured Rs. 400 crore (approximately USD 53 million) in a Series F funding round led by IIFL Wealth, along with participation from other new investors.[18] This brought the total capital raised from external sources to over Rs. 1,000 crore.[20] In 2024, the company raised Rs. 1,328 crore in a funding round,[7] which included an investment of Rs. 415 crore by Motilal Oswal Private Equity for a minority stake.[21] Other investors in the company have included Baring India and the Asian Development Bank (ADB).[22]

In September 2024, SK Finance received regulatory approval from the SEBI to proceed with its IPO, following the submission of preliminary offer documents in March 2024.[23][24]

In December 2024, the company entered into a loan agreement with the Asian Development Bank (ADB) to support financing for women-led MSMEs and electric vehicles in India.[25]

See also

[edit]

References

[edit]
  1. ^ Parman, Beena (23 December 2021). "IIFL Wealth, others invest $53 mn in TPG Growth-backed SK Finance". VCCircle.
  2. ^ Mascarenhas, Rajesh (7 August 2025). "TPG-Backed SK Finance Set to Launch Scaled-Down IPO in India". Bloomberg.
  3. ^ "ADB and SK Finance join forces to enhance financing for women entrepreneurs and electric vehicles in India". Women's Tabloid. 18 December 2024. Retrieved 17 May 2025.
  4. ^ Ramanathan, Ajay (22 July 2025). "PE-backed SK Finance taps offshore investor for capital ahead of planned IPO". VCCircle. Retrieved 29 August 2025.
  5. ^ Alex, Riya R (2 September 2024). "Sebi gives nod to SK Finance, Belstar Microfinance, and Transrail Lighting IPO, check details here | Stock Market News". mint. Archived from the original on 8 January 2025.
  6. ^ "SK Finance cuts IPO size to ₹1,600 cr, launch expected next week". BusinessLine. 7 August 2025. Retrieved 29 August 2025.
  7. ^ a b "SK Finance raises Rs 1,328 cr from TPG, Motilal Oswal". The Economic Times. 23 January 2024. ISSN 0013-0389.
  8. ^ "SK Finance raises ₹1,328 crore via equity issuance". BusinessLine. 24 January 2024.
  9. ^ "Pair act for ADB on USD100m loan to SK Finance". Law.asia. 9 January 2025.
  10. ^ "SK Finance Limited: [ICRA]AA- (Stable) assigned; earlier rating reaffirmed". ICRA. Retrieved 8 January 2025.
  11. ^ "SK Finance's planned IPO back on track, mulls geographical expansion". The Hindu. 21 August 2024. ISSN 0971-751X.
  12. ^ Mascarenhas, Rajesh; Kalesh, Baiju. "TPG-Backed SK Finance Said to Shelve India IPO After Weak Demand". Bloomberg.
  13. ^ "ADB Partners with SK Finance to Provide $100M Loan to Boost EV Financing and Women-Owned MSMEs in India | Business". Devdiscourse.
  14. ^ Goel, Saloni (27 June 2025). "IPO Tsunami Incoming! NSDL, JSW Cement, Hero Fincorp among 74 companies with SEBI nod to float public offers | Stock Market News". mint. Archived from the original on 6 July 2025.
  15. ^ "SK Finance loan book jumps 27 pc to Rs 13,261 cr in FY25; eyes Rs 2,200 cr via IPO". The Economic Times. 15 July 2025. ISSN 0013-0389.
  16. ^ Karthik, Hamsini (17 July 2025). "IPOs of SME lenders Veritas Finance & SK Finance likely in August". Moneycontrol.
  17. ^ "SK Finance Q1 net profit rises 30% to Rs 87.6 crore". Moneycontrol. Archived from the original on 4 September 2025. Retrieved 25 September 2025.
  18. ^ a b Parmar, Beena (23 December 2021). "SK Finance raises ₹400 crore from IIFL Wealth and others". mint. Archived from the original on 9 September 2024.
  19. ^ Ghosh, Shayan (13 May 2021). "Ess Kay Fincorp raises ₹337 crore". Mint.
  20. ^ "How Norwest, TPG stand to mint money as SK Finance eyes $1 bn valuation in IPO". VCCircle.
  21. ^ "Sebi puts SK Finance's Rs 2,200-crore IPO in abeyance". MoneyControl. 8 July 2024.
  22. ^ "SK Finance raises ₹1,328 crore via equity issuance". BusinessLine. 24 January 2024.
  23. ^ Matkar, Sunil Shankar. "Belstar Microfinance, Transrail Lighting, TPG-backed SK Finance get SEBI go-ahead for IPO". Moneycontrol. Archived from the original on 3 September 2024.
  24. ^ Thayil, Pratiksha (8 July 2024). "SEBI Places SK Finance's Rs 2,200-Crore IPO On Hold". NDTV Profit.
  25. ^ "ADB, SK Finance team up for $100 million loan to boost women-owned MSMEs, EVs in India". ThePrint. 18 December 2024.