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Funds managed by Motilal Oswal Private Equity invest USD 25 mn in Fincare Small Finance Bank

Mumbai 03-May-2021

Mumbai,03 May 2021: India Business Excellence Fund – III, a fund managed and advisedby Motilal Oswal Private Equity (“MOPE”) has picked up a minority stake inFincare Small Finance Bank through a secondary acquisition

Fincare Small Finance Bank is a Bengaluru based MFI-NBFC turnedSmall Finance Bank. Fincare was one of the 10 applicants out of a total of 72to receive RBI approval for converting into a small finance bank under theguidelines for this new class of banks issued by the RBI in 2015. Beforeconverting into a small finance bank, the microfinance lender was largely conductingbusiness from two entities – West India based Disha Microfin and South Indiabased Future Financial Services under a single overarching management team. Thebank commenced banking operations in July 2017 with a vision to enable thefinancial inclusion of the unbanked and under-banked base of pyramid, massretail, micro and small enterprise segments with an active participation fromthe affluent. The company has consistently outperformed its peers across allkey financial parameters.     

This transaction provides a partial exit to True North Fund V LLP one of the key investors in Fincare. Thebank has always seen strong interest from marquee private equity investors andthe current investor base also includes the likes of TA Associates, LeapFrogInvestments, Tata Opportunities Fund, etc.

AboutMotilal Oswal Private Equity

MOPE Investment Advisors Private Limited (MOPE) is a subsidiary ofMotilal Oswal Financial Services Limited (MOFSL), a diversified financialservices group with businesses in Securities, Asset Management, Private Equityand Investment Banking. MOPE is currently managing three growth capital fundsi.e. India Business Excellence Fund (IBEF), India Business Excellence Fund II(IBEF II) and India Business Excellence Fund III (IBEF III) focused onproviding growth capital to mid-market companies, typically in the range of USD15 – 50 million, across sectors. MOPE is currently managing over INR 7,500 crs(US$ 1 billion) across growth capital and real estate funds. IBEF, launched in2007 is an INR 550 Crore (US$ 115 million) fund and is fully invested inthirteen portfolio companies across sectors such as food processing, bulkpackaging, power transformers and power infra enablers, ITES, financialservices, EMS, FMCG, auto components, etc. Out of the thirteen investments ithas already made twelve exits. IBEF II, launched in 2012 is an INR 1,000 Crore(US$ 155 million) fund and is fully invested in eleven portfolio companiesacross sectors such as financial services, life sciences, niche manufacturingand consumption based sectors. On the back of its success of IBEF and IBEF II,MOPE raised INR 2,300 Crore (US$ 325 million) for IBEF III in 2018. Currently,investments are being made through IBEF III. 

Forfurther details contact:


Head– Group Corporate Communication, Motilal Oswal Financial Services


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