Amicus Capital invests upto INR 70 crores (US$ 10 mn) of growth capital in Nagpur based two wheeler financier, Berar Finance Limited
- February 20, 2020
Berar Finance Limited (“Berar Finance” or “the Company”), a Nagpur based deposit taking non-banking financial company (“NBFC”) with focus on two-wheeler financing, has today announced an equity raise of upto INR 70 crores (US$ 10 mn) from Amicus Capital (“the Fund”), a mid-market growth capital fund. This is the first institutional fund raise by Berar Finance.
Berar Finance was founded by Maroti G. Jawanjar and is today one of the leading two‑wheeler financing companies in Central India with a loan book of INR 4,600 mn. It has a network of 61 branches spread across the 6 states of Maharashtra, Chhattisgarh, Madhya Pradesh, Gujarat, Karnataka & Telangana. Apart from two-wheeler loans, the Company’s product offering includes used car loans, two-wheeler refinance loans and personal loans. It is one of the select NBFCs in India with a license from the Reserve Bank of India (“RBI”) to accept retail deposits from public.
The Company plans to use the proceeds of the current round of fundraise to expand its branch network as well as diversify its product offerings. The fund raise shall enable the Company to achieve its growth targets, remain well-capitalized in the near-term and potentially lower the cost of borrowings.
Commenting on the investment, Mr Sandeep Jawanjal, Co-Founder and Executive Director, Berar Finance said, “Berar Finance has grown consistently since inception and has emerged as one of the leading two-wheeler financing companies in Central India. The current round of capital raise will help the Company expand its branch network as well as further diversify its product offering. We are excited at partnering with Amicus Capital as we grow Berar into one of India’s top vehicle financing companies.”
Commenting on the investment, Mr Mahesh Parasuraman, Co‑Founder and Partner, Amicus Capital said, “Berar Finance has a leadership position in two-wheeler financing in Central India, an entrenched branch and partner network in semi-urban and rural areas, and a well-diversified liability profile. The Company has strong track record of growth and profitability, a high quality loan book and one of the few NBFCs with a deposit taking license. We are excited at the prospect of partnering with the Company and are committed to helping the Company to achieve a leadership position as it expands its geographical presence and diversifies its product offerings.”
IIFL Securities was the sole financial advisor to Berar Finance for the transaction.
About Berar Finance:
Headquartered in Nagpur, Berar Finance was founded in 1990. It is one of the leading two-wheeler financing NBFCs in Central India. It has a network of 61 branches spread across the states of Maharashtra, Chhattisgarh, Madhya Pradesh, Gujarat, Karnataka and Telangana. It has a network of 1,100+ dealers and sub-dealers mostly located in rural and semi-urban areas. The Company is headed by Maroti G. Jawanjar and Sandeep Jawanjal who have significant domain experience.
The Company has diversified its product offering from only two-wheeler loans and currently offers multiple products including two-wheeler refinance, used car loans and personal loans. Its loan book has grown at a CAGR of 29% from INR 2,200 mn in March 2017 to INR 4,600 mn in February 2020. Berar has a well-diversified lender base comprising of 18 financiers which includes a mix of scheduled banks and NBFCs. The Company is also one of the select NBFCs in India with a license to accept public deposits from the RBI.
About Amicus Capital:
Amicus Capital is an India dedicated mid-market growth capital fund set-up by experienced PE professionals, Sunil Theckath Vasudevan and Mahesh Parasuraman. The Fund is currently investing out of its first fund of US$ 88 mn (INR 625 crores). Amicus Capital is focused on investing in four sectors where the investment team has deep experience and networks – financial services, consumer, healthcare and technology. The Fund seeks to invest US$ $8-20 mn in fast growing businesses looking to scale up once the business model is proven. The fund aims to partner with entrepreneurs with minority stakes in their portfolio companies, to build scale and create segment/category leaders.
Berar is Amicus Capital’s fourth investment from its maiden fund. It had earlier invested in Delhi based online insurance aggregator RenewBuy.com (www.renewbuy.com), Mumbai-based kitchen appliances and cookware firm Wonderchef (www.wonderchef.com) and Punjab based small finance bank, Capital Small Finance Bank (www.capitalbank.co.in).