Arka Fincap Secures ₹525 Cr TPG Investment

Arka Fincap, a Kirloskar Group-promoted non-banking financial company, has entered into definitive agreements for an initial investment of ₹525 crore from TPG's The Rise Funds. An additional ₹275 crore may be invested contingent upon achieving business milestones and regulatory approvals.

This significant capital injection will empower Arka Fincap to expand its secured retail lending portfolio, which currently surpasses ₹1,000 crore, and bolster its technology and risk management systems. The company, established in 2018, aims to increase its presence across 10 states where it operates through 146 branches with over 2,000 employees.

The investment underscores Arka Fincap's strategic focus on growing its secured retail lending alongside its existing wholesale lending business. The funds will also support lending to small businesses and vehicle operators, segments identified for increased access to formal credit.