Kirloskar-Backed Arka Fincap Secures Initial ₹525 Crore Investment from TPG's The Rise Funds

NEW DELHI: Arka Fincap Ltd, a non-banking financial company (NBFC) promoted by the Kirloskar Group, announced on Saturday that it has signed definitive agreements with The Rise Funds for a strategic investment of an initial amount of ₹525 crore. The Rise Funds is a core pillar of TPG's global impact investing platform.

According to the company's statement, the definitive agreements also incorporate a potential investment for an additional ₹275 crore through a subsequent tranche. This secondary funding is subject to the achievement of specified business milestones aligned with Arka's growth strategy and the receipt of requisite regulatory approvals.

Arka operates as a diversified, secured retail lending NBFC with assets under management (AUM) amounting to ₹8,000 crore. The firm currently maintains a physical presence across ten states through a network of 146 branches.

The NBFC stated that the capital infusion from TPG will be utilized to provide growth capital, supporting the evolution of its business by deepening its geographical reach. Additionally, the funds will be directed toward accelerating investments in technology and risk management capabilities.

Gauri Kirloskar, Vice Chairperson and Managing Director of Kirloskar Oil Engines Ltd, commented on the development: "We believe this partnership marks the beginning of a meaningful, long-term relationship that will create lasting impact for Arka, TPG and all our stakeholders, most importantly our customers across the country."

Samrat Gupta, Managing Director of Arka Fincap Ltd, noted that the Kirloskar Group's legacy combined with TPG's global investment expertise establishes a reliable platform for the company's next phase of expansion. He added that crossing ₹1,000 crore in secured retail assets represents a defining milestone in the firm's broader ambitions.

Simit Batra, Business Unit Partner at TPG, observed that many of India's micro, small, and medium enterprises (MSMEs) and vehicle operators remain underserved by formal financial services. He noted that Arka has built a disciplined, secured retail lending platform to cater to this segment with the potential for scaled reach.

"This strategic investment by The Rise Funds into Arka Fincap highlights the growing interest of global private equity players in India's secured retail lending sector. By targeting underserved segments like MSMEs and vehicle operators, NBFCs backed by established institutional names are well-positioned to scale operations effectively. For ecosystem observers, the phased structure of this funding—tied to specific milestones and regulatory approvals—demonstrates a disciplined approach to long-term capital deployment and risk management in financial services." — Dr. Shishir Gupta, Founder & CEO, StartupLanes