Banyan Tree Invests In Pre-owned Auto Loans Provider - Ess Kay Auto

March 03 2012

Jaipur based NBFC - Eass Kay Auto Finance Private Limited has raised funding from Banyan Tree Growth Capital LLC. Post transaction, Banyan Tree will have a board representation.

Ess Kay will use the funds to ramp up operations and improve its Capital Structure.

Ladderup Corporate Advisory Private Limited was the sole advisor to teh transaction.

Promoted by Rajendra Sethia, Ess Kay finances pre-owned commercial vehicles. It finances commercial vehicle, multi utility vehicle, car, three-wheeler etc. It also originates loans for AU Financiers (I) Pvt. Ltd. under channel business arrangement. The company has 45 branches spread across Rajasthan and Gujarat.

The company reported net profit of Rs. 2.28 Cr on total income of Rs. 11.8 5Cr as compared to net profit of Rs. 0.62 Cr on total income of Rs. 4.75 Cr. It had loan portfolio of R14.21Cr on its book and R108.85Cr of off-book portfolio as on March 31, 2011. For H1FY12, the company reported net profit of R2.88Cr on total income of Rs. 10.66 Cr.

This is fourth PE investment in NBFC in first quarter of 2012. Last month, Warburg Pincus announced a $50Mn investment in Japiur based AU Financiers Pvt Ltd. Multiples Alternate Asset Management and Creador Capital are investing Rs. 106.04 Cr for a 15% stake in Cholamandalam Investment And Finance Company and Jacob Ballas is planning to acquire 5% stake in Religare Finvest, the NBFC controlled by Religare Enterprises for Rs. 200 Cr.

This is Banyan Tree's eight investment in India. Last month, it invested in Bhopal based EPC firm - Dilip Buildcon, read this. It's other investments include Axiom Cordages, Trimax IT Infrastructure Systems, GEI Industrial Systems, Deepak Fasteners and Dee Development Engineers.