Five Star gets Rs. 270 cr. from Sequoia, Norwest

August 10, 2017 12:00 am | Updated 04:48 am IST - CHENNAI

NBFC to expand loans with the funds

Five Star Business Finance Limited, a Chennai-based non-banking finance company specialising in small-ticket business and housing loans, raised fresh equity from Norwest Venture Partners and Sequoia Capital and its existing investors — a fund managed by Morgan Stanley Private Equity Asia and Matrix Partners.

As part of the current transaction, which includes Rs. 318 crore of primary infusion and Rs. 15 crore of secondary share sale, Norwest Venture Partners and Sequoia Capital invested Rs. 135 crore each. The fund managed by Morgan Stanley Private Equity Asia invested Rs. 61 crore and Matrix Partners the balance.

Investors’ holdings

The two new investors will have 10% holding each in the company, said K. Rangarajan, chief operating officer. The two existing investors will have a holding of about 24% each.

Mr. Rangarajan said the funds would be used to expand the loan portfolio and partly increase the home loan activity of its housing subsidiary. The company expects to double its loan book to Rs. 1,000 crore this financial year.

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