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

Promoters and investors of IKF were considering a sale of a controlling stake that might appraise the company at $200-250 million. The company did not verify its valuation following the round.

Norwest took the lead in the recent funding round with an investment exceeding $100 million. MO Alternates, which initially invested in IKF in 2015, has reinvested after achieving exceptional returns.

Established in 1991 by V.G.K. Prasad, IKF Finance functions in nine Indian states, providing secured loans such as used commercial vehicle financing and support for micro, small, and medium enterprises (MSMEs). Its affiliate, IKF Home Finance, offers budget-friendly housing loans and loans secured by property. By March 2025, the company possessed a loan portfolio worth approximately Rs. 6.7 thousand crore.

As of 31 December, promoters owned a 42.84 percent share, while two funds managed by Motilal Oswal Private Equity—India Business Excellence Fund II at 11.12 percent and IIA at 18.60 percent—followed. Accion Digital Transformation Fund owns 7.96 percent of the company, with an additional 7.96 percent held 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,” says Prasad.

The company plans to use the funds to strengthen its distribution network, and invest in technology and people to scale its lending operations to a wider range of customers, according to K. Vasumathi Devi, managing director, IKF Finance.

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“Our investment reflects strong confidence in IKF’s responsible lending track record, governance, and deep commitment to underserved borrowers,” says Nikhil Kookada, principal at Norwest.

Moelis & Company and Unitus Capital acted as financial advisors to IKF Finance. Cyril Amarchand Mangaldas served as legal counsel to IKF and MO Alternates, while Shardul Amarchand Mangaldas advised Norwest.