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TPG's Rise Funds puts an initial Rs 525 crore into Kirloskar backed lender Arka Fincap
The NBFC says the money will fund secured retail lending, a wider branch footprint and more spending on technology and risk systems. Another Rs 275 crore can follow if milestones are met.
Arka Fincap, the non banking finance company promoted by the Kirloskar Group through listed Kirloskar Oil Engines, said on Saturday, 7 November 2026, that it has signed definitive agreements with The Rise Funds, the impact investing platform of global investor TPG, for an initial investment of Rs 525 crore. The agreements allow for a second tranche of Rs 275 crore, which would take the total to Rs 800 crore, if Arka hits specified business milestones and gets the regulatory approvals it needs, the company said. It did not disclose the stake TPG will hold or the valuation.
Arka was founded in 2018 and built its business on wholesale lending to companies. It is now shifting towards smaller, secured loans for retail borrowers: pre owned vehicle finance, secured business loans and loans against property for entrepreneurs, small businesses and vehicle operators. The Economic Times reported that its assets under management stand at about Rs 8,000 crore, including a secured retail book of more than Rs 1,000 crore, with 146 branches across 10 states and more than 2,000 employees.
The company says the new capital will go into growing the retail lending businesses, reaching more regions and speeding up investment in technology and risk management. Managing director Samrat Gupta described crossing Rs 1,000 crore in secured retail assets as a defining milestone and spoke of tech led credit discipline. TPG partner Simit Batra said many Indian small businesses and vehicle operators remain underserved by formal finance, according to the company's statement as reported by ET.
For the digital lending story, the deal shows a large global investor backing India's small business credit gap through secured loans, with technology and risk systems named as a use of the money. Avendus Capital advised Arka on the deal. The next things to watch are whether the second Rs 275 crore tranche is triggered and how quickly Arka's retail book grows relative to its older wholesale portfolio.
