NBFC Shrinithi Capital which primarily focuses on commercial vehicle and two-wheeler loans on Tuesday announced that it has raised Rs 300 crore as co lending facility from Ltd.
IndoStar Capital Finance is a 10,000 crore net worth company owned by Everstone Capital and Brookfield investment, Canada. The agreement between the two companies was signed by IndoStar Capital Finance CEO Deep Jaggi and Shrinithi Capital CEO S Sellamani.
“Shrinithi’s quick growth to this level in the middle of a pandemic, with equally efficient best in industry collection figures, where even seasoned players were struggling to build and sustain a portfolio, caught the eye of the entire industry. Through this arrangement, we have planned to disburse Rs 400 crores in 2022 to small truck transporters, owner-cum-drivers especially to the low-profile customers who are at the bottom of the pyramid, who are unable to take loans from banks and leading NBFCs,” Sellamani said.
He went on to add that the company is looking to increase its branch network from 25 to 50, by expanding its operations in the neighbouring regions like Pondicherry, Kerala, Andhra Pradesh and Karnataka.
“We strongly believe that the company has the fundamentals right to become one of the strongest players in the industry. We are pleased to announce that we are currently affiliated with Shrinithi in an effort to further expand our presence. As the first phase of this merger, we are currently in the process of concluding a co lending facility which is worth of Rs. 300 crores. We look forward to investing more in this sector in the years to come,” Jaggi said.
Shrinithi Capital boasts assets under management of Rs 135.53 crores which includes lending partnerships with
Leyland Finance and Deccan Finance. The company has a branch network of 25 locations and over 300 employees. The co lending tie-up with IndoStar Capital Finance will give the Chennai-headquartered company the ability to grow its Assets under management to Rs 400 crores by the end of 2022.