The private equity fund Maj Invest Financial Inclusion Fund III has completed its second investment by acquiring primary shares in Berar Finance Limited (Berar). Established in 1990, the company is a regulated Deposit-Taking Non-Bank Finance Company (NBFC), which specializes in commercial two-wheeler vehicle finance. It is headquartered in Nagpur, Maharashtra, India (in the middle part of the country), with operations expanding to the mid and southern states of the country.
The company provides loans to individuals and micro and small businesses to purchase two-wheeler vehicles with an average ticket size around USD 810. In India, the demand for such vehicles is immense since there is a lack of public transportation outside modern urban regions and people’s needs for everyday commute and business travels are not met.
Berar is based on a core-banking business model, taking deposits and debts to finance its customers’ purchase of two-wheeler vehicles. Berar has a loan portfolio of around USD 93m and deposits of USD 16m.
Berar has significantly contributed towards promoting financial inclusion with over 60% of clients in agricultural & allied activities, 90% presence in rural areas and 64% of clients being new to credit, previously underserved. The company has a presence through 105 branches and a strong network of dealerships which help source customers efficiently. The company also has a thorough credit assessment and loan management system in place to ensure high asset quality.
In addition to providing capital for the company to grow, Maj Invest will also contribute to corporate governance of the company as well as promote a positive impact on the environment with the strategic introduction of electric vehicle financing in the long term.
Also see news articles in the media:
VC Circle, India: Denmark-based PE firm Maj Invest invests in two-wheeler financier Berar
Live Mint, India: Denmark-based PE firm Maj Invest invests in two-wheeler financier Berar
For more information, please contact:
Kasper Svarrer, Managing Partner, Financial Inclusion, Maj Invest
Mobile: +45 33 38 73 60
Mail: ksv@majinvest.com