Kogta Financial raises $148 million in Series-E investment from Ontario Teachers’ Pension Plan

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Kogta Financial (India) Ltd (Kogta), a Jaipur-based NBFC, has raised ₹1,230 crore ($148 million) in a Series E Investment round from the Ontario Teachers’ Pension Plan. With this investment, the Ontario Teachers’ Pension Plan has picked a significant minority stake in the non-banking finance company (NBFC). 

Rahul Mukim, Director, Private Capital, India is slated to join the board of Kogta as a nominee of the Ontario Teachers’ Pension Plan. Kotak Investment Banking was the financial advisor to the transaction.

Kogta focuses on the large and under-served vehicle finance and MSME loan market. Started in Rajasthan in 1996, Kogta has now expanded across 10 states, with 225+ branches and 5,000+ employees.

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Arun Kogta, MD and CEO of Kogta, said, “This is a significant milestone for the company, and we are pleased to welcome on-board Ontario Teachers’ Pension Plan. Their experience would help Kogta navigate the next phase of its growth journey, deepening its reach across chosen geographies and product segments. We believe the investment by Ontario Teachers’ is a stamp of confidence for the underlying business model built over the years”

Deepak Dara, Senior Managing Director and Head of India for Ontario Teachers’ said, “Our investment in Kogta underscores our commitment to identifying and backing high-growth opportunities in India’s vibrant financial services sector. The used vehicle and livelihood financing segment is significantly under penetrated, and Arun and Varun have built a scalable business model with a strong focus on asset quality, deep technology orientation, and talent. We are excited to partner with them to further accelerate their growth trajectory.”

Varun Kogta, ED and CFO of Kogta, said, “The investment from Ontario Teachers’ will help enhance our balance sheet strength and increase the conviction of credit rating agencies and lenders in the company.

We would also like to appreciate the inputs from our existing investors (Creador, Morgan Stanley, Multiples & CPP Investments) and look forward to their support over the coming years”

The funds raised by Kogta from Ontario Teachers’ Pension Plan will be used as primary capital to drive growth across its product offering and expand its regional presence, and will also provide partial exits to Kogta’s existing institutional investors Morgan Stanley and Creador.

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The NBFC has assets under management of ₹4,800 crore across commercial vehicles, passenger vehicles, tractors, construction equipment, and MSME loans.

Cindy Yan, Senior Managing Director, Private Capital, Asia-Pacific, for Ontario Teachers’ said: “Financial services and non-banking lending financial services are global focus sectors where we have significant expertise. We are pleased to support Kogta Financial in its mission to provide financing solutions to the underserved vehicle and MSME sectors in India. This investment aligns with our strategy of supporting strong management teams in high-growth businesses with a clear competitive advantage.”