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Global Investors Instill Confidence Yet Again in Au Financiers

April 16, 2014 - New Delhi, Delhi, Mumbai, Maharashtra, India

With its loan books inching towards the US$ 1 billion mark, Au Financiers has raised additional capital amounting to US$ 21 million in its fourth and latest round of fund raising under preferential offer of shares to existing shareholders, i.e. promoters and Investors, International Finance Corporation, Wargbug Pincus, Chrys Capital after raising equity in earlier rounds in 2008, 2010 and 2012. The current round of investment reflects continuous confidence and trust reposed by the investors in the growth story of the company. In this round, Motilal Oswal Securities Limited, a leading financial services group also participated in the preferential offer of shares and invested US$ 3 million in the form of equity capital in the company.

Commenting on the development, Mr. Sanjay Agarwal, MD Au Financiers said, “Capital infusion & confidence by our elite investors shall further help Au Financiers to diversify its product lines and penetrate deeper, thus reaching across to entrepreneurs and small business owners in rural areas who have skills and aspirations but don’t have easy access finance from Banks.

The investment will primarily be used for further development of product verticals, expanding its Branch network in 10 states, i.e. Rajasthan, Maharashtra, Gujarat, Goa, Punjab, Madhya Pradesh, Chhattisgarh, Delhi-NCR, Haryana and Himachal Pradesh and for future business expansion activities of the company and the group.

The company is supported by prominent global investors namely, IBEF & IBEF I funds advised by Motilal Oswal Group, International Finance Corporation, Member World Bank Group, Redwood Investment Limited (Advised by Warburg Pincus), and Labh Investments Limited (a subsidiary of Chrys Capital), which have invested in Au Financiers (India) Limited, headquartered at Jaipur, having 225 branches in North Western parts of the India.

The company is also supported by FMO, a Dutch development bank, GuarantCo owned by FMO, Standard Bank Group and CDC, a UK based Development Finance Institution which is one of the oldest DFI of the world for long term debt financing, along with other debt investors.
About Au Financiers:
Au Financiers (incorporated in 1996) is a non-deposit taking Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI) and promoted by first generation entrepreneur Mr. Sanjay Agarwal, an All India Rank Holder, qualified Chartered Accountant. The Company is a prominent vehicle financing player in Northern, western and central India with diversified products and service offerings including all kinds of vehicles i.e. commercial vehicles (multi-utility, small, light and heavy), cars, construction equipment, tractors and financing SME loans. There is a huge untapped rural and semi-urban market for small scale business loans including retailers, service providers and small manufacturing units where access to credit is minimal. Here, Au financiers fit in with its reach, localized manpower and professional team to offer loans to this customer segment. Au Financiers also floated Au Housing Finance Limited, a wholly-owned subsidiary, to offer home loans in rural areas to cater needs of unserved, unreached customer segment and markets; Au Insurance Broking Services Private Limited is an associate company, offering insurance broking services. In FY2013-14, Au Financiers made strategic investment in Mpower Micro Finance Pvt. Ltd.; a Gujarat based NBFC offering loans to women for revenue generation activities. Mpower Micro Finance is an associate Company of Au Financiers, serving the financial needs of the “Bottom of the Pyramid” an unreached, unserved and unbanked customer segment.
 About Investors:
Warburg Pincus acting through Redwood Investment Ltd is an existing shareholder of Au Financiers is a leading global private equity firm headquartered in New York with offices over the world and has more than US$ 37 billion in assets under management.  Its active portfolio of more than 120 companies is highly diversified by stage, sector and geography. Founded in 1966, Warburg Pincus has raised 13 private equity funds which have invested more than $48 billion in over 700 companies in more than 35 countries. Over the past decade, affiliates of private equity funds raised by Warburg Pincus have invested about US$ 3 billion in Indian companies. 
 IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. IFC foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets like India and other countries.  IFC, existing shareholder of Au Financiers is a member of the World Bank Group, and is the largest global development institution focused exclusively on the private sector. IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries.
Chrys Capital acting through the Labh Investment Limited being existing shareholder of Au Financiers, manages $2.5 billion across six funds and aspires to build the leading investment firm focused on India. It’s disciplined investment approach translates the growth in the Indian economy into superior returns for our investors. We have developed a strong track record with several successful realizations.

Increasing faith of Investors bears testimony of our sustainable value creation, management expertise and the ability to create a sound business that can accept the challenges of a changing economic scenario.
Motilal Oswal Securities Limited is an Indian entity, offering a range of financial products and services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, etc.  It also has a network spread over 519 cities with 1546 business locations and with customer base of 792858 registered customers.
About Debt Investors:
FMO is the Dutch development bank. They support sustainable private sector growth in developing and emerging markets by investing in ambitious companies. They believe a strong private sector leads to economic and social development, empowering people to employ their skills and improve their quality of life.
Founded in 1948, CDC is the UK’s Development Finance Institution (DFI).  Wholly owned by the UK Government’s Department for International Development, it is the world’s oldest DFI. CDC’s mission is to support the building of businesses throughout Africa and South Asia, to create jobs and make a lasting difference to people's lives in some of the world's poorest places.

Source: Business Wire India


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