Private equity firms Baring Private Equity Partners India (BPEP India) and Matrix Partners India have invested a total of INR 1.57 billion (€25.8 million; $33.7 million) in the first round of funding for a minority stake in gold lender Muthoot Finance, according to a statement.
Kerala-based Muthoot Finance specialises in appraisals, disbursements and loans of gold. Currently, the company operates more than 1800 lending outlets throughout India. In addition to loans, the company also offers insurance, sales of gold coins, money transfer, foreign exchange and asset financing services.The company says it will use the fresh capital to “strengthen the capital base of our company”.
BPEP India and Matrix Partners India did not specify the stake they have taken in Muthoot. Neither firm was available for comment by press time.
BFEP India manages assets in excess of $1 billion across three funds and makes significant minority or control investments in sectors such as IT and IT-enabled services, life sciences, banking and financial services, energy, infrastructure and consumer goods. The firm has made more than 20 investments since its inception in 1997, including pharmaceutical company Sphaera, renewable energy company Auromira Energy and financial services company JRG securities.
Matrix Partners India is an investment firm with INR 15 billion under management. The firm invests up to INR 1.25 billion in businesses across multiple sectors. Current portfolio companies include mobile classifieds service company Ver Se, career education company FIITJEE and electronic currency company ItzCash.