Jaipur-based auto loan company Au Financiers has raised USD 21 million from a clutch of investors to expand into newer geographies and launching new product lines.
The World Bank group arm International Finance Corporation, Wargbug Pincus, Chrys Capital - all existing investors in the company - collectively pumped in USD 21 million in the latest round, while Motilal Oswal Securities got added as a new investor with an investment of USD 3 million, Au Financiers said in a statement today.
The investment, which is the fourth round of capital raising by the non-bank lender, was done through a preferential allotment of shares, it said.
The proceeds from the infusion will be used for further development of product verticals and expanding its branch network in 10 states, the statement said.
Company's Managing Director Sanjay Agarwal said the money will help it diversify product lines and penetrate deeper to reach people not served by the banks.
The non-banking finance firm offers commercial vehicle loans, car loans, loans against property and loans for small businesses at present.
It plans to expand into Rajasthan, Maharashtra, Gujarat, Goa, Punjab, MP, Chhattisgarh, Delhi-NCR, Haryana and Himachal through the fund infusion, it added.