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Five Star Business Finance, which lends to small businesses, has rasied about ₹333 crore ($50 million) from Norwest Venture Partners, Sequoia Capital and existing investors, including a fund managed by Morgan Stanley Private Equity Asia and Matrix Partners.
With this equity infusion, Five Star’s networth stands at ₹550 crore. The transaction includes ₹318 crore of primary infusion and ₹15 crore of secondary sale of shares. Norwest Venture Partners and Sequoia Capital have each invested ₹135 crore. The Morgan Stanley Private Equity Asia managed fund put in ₹61 crore and Matrix Partners the balance.
Five Star Business operates 110 branches across South India and serves over 18,000 customers. It specialises in extending secured, small business and housing loans. For FY18, the company is expected to double its loan book to ₹1,000 crore.
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