IKF Finance raises ₹1,465 crore from Norwest and Motilal Oswal Alternates

IKF Finance, a non-banking financial company based in Hyderabad, has raised around ₹1,465 crore ($175 million) from global investment firm Norwest and existing investor Motilal Oswal Alternates, the company announced on Thursday. The round, IKF’s largest to date, included both primary capital and a secondary component, it added

Mint first reported in September 2024 that IKF’s promoters and investors were exploring a controlling stake sale that could value the company at $200-250 million. The company did not confirm its valuation after the round.

Norwest led the latest round with an investment of more than $100 million. MO Alternates, which first invested in IKF in 2015, has reinvested “post making stellar returns”, the company said.

Founded in 1991 by V.G.K. Prasad, IKF Finance operates across nine Indian states, offering secured loans including used commercial vehicle loans and financing for micro, small and medium enterprises (MSMEs). Its subsidiary, IKF Home Finance, provides affordable housing loans and loans against property. As of March 2025, the company had a loan book of about ₹6,700 crore.

Promoters held a 42.84% stake as of 31 December, followed by two funds (India Business Excellence Fund II – 11.12%, and IIA – 18.60%) managed by Motilal Oswal Private Equity. As much as 7.96% of the company is held by Accion Digital Transformation Fund, and another 7.96% by Teachers Insurance and Annuity Association of America.

“This is a key milestone in our journey to expand access to inclusive, flexible financial solutions for underserved communities,” said Prasad.