Pune, 7th November 2026: Arka Fincap Limited (“Arka”), a Kirloskar Group-promoted non-banking financial company (NBFC), today announced it has signed definitive agreements with The Rise Funds, TPG’s multi-sector global impact investing strategy. The strategic investment comprises an initial investment of INR 525 crore, with the potential for an additional INR 275 crore through a subsequent tranche, subject to the achievement of specified business milestones aligned with Arka’s growth strategy and requisite regulatory approvals.
The investment marks a significant milestone in Arka’s evolution into a diversified, secured retail lending institution. From its inception in 2018, the company has grown in scale and has built a stable and sustainable business. Over the past 18 months, the company has strengthened its leadership, built a pan-regional distribution network and incubated new secured lending businesses towards delivering value to all stakeholders. Today, with an AUM of ~ INR 8,000 crore and a presence across ten states through 146 branches, Arka is building a broader and more granular lending franchise, while continuing to leverage its established wholesale lending platform.
The investment from TPG will provide growth capital to support the evolution of the business through deepening its geographical reach and accelerating investments in technology and risk management capabilities. With TPG’s extensive sector experience and innovative approach towards building and scaling successful financial institutions, together with Kirloskar Group’s long-term institutional commitment, deep understanding of the geography and the customer, Arka is well positioned to capitalise on the vast opportunity in India’s secured lending market.
Gauri Kirloskar, Vice Chairperson and Managing Director, Kirloskar Oil Engines Limited, said:
“As a Group, we have always placed great value on enduring partnerships and the institution-building ethos of creating businesses that stand the test of time. We seek partners who share this philosophy, and we see a strong alignment with TPG’s approach. We believe this partnership marks the beginning of a meaningful, long-term relationship that will create lasting impact for Arka, TPG and all our stakeholders, most importantly our customers across the country.”
Samrat Gupta, Managing Director, Arka Fincap Limited, said:
“At Arka, we believe resilient financial institutions are built on capital anchored in character, customer servicing and unwavering tech-led credit discipline. Crossing ₹1,000 crore in secured retail assets is a defining milestone in our ambition to build a formidable, future-ready financial enterprise, serving entrepreneurial aspirations of our country. Kirloskar Group’s established legacy and TPG’s global investment expertise create a trustworthy platform for Arka’s next phase of growth.”
Simit Batra, BU Partner, TPG, said:
“Many of India’s MSMEs and vehicle operators remain underserved by formal financial services, and Arka has built a disciplined, secured retail lending platform to serve these customers, with the potential to reach even more customers at scale. We are excited to partner with the Kirloskar Group and Arka’s experienced team as the company enters its next phase of growth.”
The investment reflects The Rise Funds’ approach to partnering with growth-stage, mission-driven companies with the potential to deliver meaningful impact at scale alongside strong performance. Arka’s growing presence in vehicle financing and secured lending to small businesses provides an opportunity to expand access to formal credit among entrepreneurs and vehicle operators, who are vital contributors to India’s economic ecosystem.
Avendus Capital acted as the exclusive financial advisor and AZB & Partners acted as legal advisors to Arka on the transaction. Cyril Amarchand Mangaldas acted as legal advisors to TPG on the transaction.
About Arka Fincap Limited
Arka Fincap Limited is a Reserve Bank of India-registered non-banking financial company and part of the Kirloskar Group, promoted by publicly listed Kirloskar Oil Engines Limited. With assets under management of ~ INR 8,000 crore, Arka operates across ten states through a network of 146 branches.
Arka offers a diversified portfolio of financing solutions spanning pre-owned vehicle financing, secured business loans, loan against property and wholesale lending. The company serves entrepreneurs, MSMEs, vehicle operators and corporate clients through a combination of specialised lending businesses and a growing distribution network. With a strong promoter lineage, an established wholesale franchise and an expanding secured retail platform, Arka is focused on building a scalable, technology-enabled and sustainable financial institution. Arka is rated CRISIL AA/Stable.
About Kirloskar Oil Engines Limited
Kirloskar Oil Engines Limited (KOEL) is one of the flagship companies of the Kirloskar Group, with a legacy spanning nearly eight decades. A leading engineering and manufacturing company, KOEL offers a diverse portfolio of energy and power solutions, including engines, generator sets, industrial engines, agricultural equipment and water management solutions. With a strong focus on engineering excellence, innovation and customer-centricity, the company serves a wide range of industries across domestic and international markets through its manufacturing capabilities and extensive distribution and service network. KOEL is listed on the BSE and National Stock Exchange of India.
For more information, please visit www.kirloskaroilengines.com
About TPG
TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with $346 billion of assets under management and investment and operational teams around the world. TPG invests across a broadly diversified set of strategies, including private equity, impact, credit, real estate, and market solutions, and our unique strategy is driven by collaboration, innovation, and inclusion. TPG’s teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities.
About The Rise Funds
The Rise Funds are a core pillar of TPG’s global impact investing platform. Founded in 2016 by TPG in partnership with Bono and Jeff Skoll, The Rise Funds invest behind impact entrepreneurs and growth-stage, high-potential, mission-driven companies that are focused on building and scaling solutions to the world’s most complex challenges. The Rise Funds deliver capabilities and expertise across a wide variety of sectors and countries at scale, focusing on opportunities in climate and decarbonization, education, financial inclusion, healthcare, and impact technology.
TPG’s Impact Platform is the world’s largest of its kind, managing approximately $37 billion in assets across a family of funds that pursue non-concessionary returns and social and environmental impact at scale through growth equity, private equity, and infrastructure investing strategies.
