BANGALORE: AU Financiers (India) Pvt. Ltd announced on Monday that U.S.-based private equity firm Warburg Pincus and World Bank affiliate International Finance Corp have invested $50 million in the non-banking finance company.
The investment will be primarily used to fund future growth of the Jaipur-based company and will also provide some liquidity to early investors, according to a press statement released by AU Financiers.
IFC, which is an existing investor in the company, will maintain its current stake, post-infusion. However, the statement did not disclose the stake picked up by Warburg Pincus.
"The current round led by Warburg Pincus is the single largest equity infusion in the company which would double our net worth," Sanjay Agarwal, founder and managing director, AU Financiers was quoted as saying.
The company, which also counts Motilal Oswal as one of its institutional investors, has also made a concerted foray in to the housing finance market, largely in Rajasthan and a few other markets where it has a presence.
In a previous round of equity funding in 2010, AU Financiers had reportedly raised Rs 55 crore from IFC and Motilal Oswal's India Business Excellence Fund (IBEF).
Global consultancy major Ernst & Young was the sole financial advisor for the transaction.
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