IKF Finance AUM crosses Rs. 2,000 cr

Hyderabad: IKF Finance, India's prominent Non-Banking Finance Company (NBFC) announced that its Assets under Management (AUM) crossed Rs 2,000 crore. It has set plans to scale up the AUM to more than Rs 6,000 crore in the next three years leveraging on technology and distribution network.

The Hyderabad-headquartered company has developed strong competencies in the loan origination and underwriting of underbanked and underserved segments. With the push from Reserve Bank to NBFCs, the sector has accelerated and has been able to cater to the last mile funding.

On the occasion, VGK Prasad, Founder & Chairman of IKF Group, said: "The company has a diverse liability franchise with limits from all PSU banks and financial institutions. Leveraging the co-lending partnership with Bank of India and ICICI Bank, we will also target customers from tier II & III cities."

IKF Finance is well positioned with a healthy growth in topline and bottomline. The company's subsidiary has also posted robust performance in its respective segments. Its Managing Director K Vasumathi Devi says IKF Finance is set to be a one-stop platform for all vehicle financing needs for the under-served.

She said, "We have been providing our services to the under-served segment to meet their financial needs. IKF reported a profit after tax (PAT) of Rs 40 crore in FY22 as against Rs 32 crore during FY21. It is bringing synergy between finance and technology with an objective to enhance efficiency in business."

Rama Raju, CEO of IKF Finance said, "The company has presence in nine States comprising of 113 branch offices across India. So far, it has served more than 2 lakh customers. It also plans to recruit over 1,000 local resources as part of its expansion plans in the next few years."

"Disbursements for the first half went up by 107 per cent as opposed to the same period and touched Rs 711 crore. Total AUM was Rs 2,043 crore, showing an increase of 34 per cent. The asset quality improved with gross NPA coming down to 2.63 per cent from 3.34 per cent in first half," he added.

Established in 1991, IKF Finance provides loans for the purchase of all category new and used vehicles through customised schemes. It has been associated with marquee investor – Motilal Oswal Alternates (MO Alts), the private equity arm of Motilal Oswal Financial Services Ltd – for more than seven years.

Vinit Mehta, Director - MO Alts said, "We have seen the company grow from less than Rs 500 crore at the time of our investment in 2015 to more than Rs 3,500 crore by end of FY23, which is a 7x growth since our investment. It is well poised to sustainably grow 30-40 per cent annually."