Neo Secondaries Fund is expected to join Kenro Capital in picking up a stake in SK Finance as some early investors explore partial exits in the Jaipur-based non-banking financial company, two people familiar with the matter said.
Long-term backers TPG and Norwest Venture Partners, which have held stakes in the lender for eight to nine years, are expected to be among the selling shareholders, these people added. The conversations are still underway, with Neo and Kenro expected to pick up a combined stake worth ₹400 crore in the company, they said.
In July, Mint first reported on early investors’ talks with . While emails sent to SK Finance, Norwest, and Kenro did not elicit a response till the time of publishing, TPG and Neo declined to comment.
The attempts for a partial exit in the private markets come more than a year after SK Finance shelved its listing plans. In 2024, the company filed its preliminary papers for an initial public offering (IPO), looking to raise about ₹2,200 crore. The issue was dominated by an offer for sale by existing investors and promoters, alongside a small primary capital raise.
IPO shelved
The company received the regulator’s approval for the listing and even reduced its offer size before eventually deciding to postpone those plans, citing unfavourable market conditions, concerns over valuation and subdued investor sentiment. Since then, valuations in the secured lending space have improved somewhat.
India Ratings noted that the company will likely revisit its listing plans once market conditions improve. The rating agency expects SK Finance to raise fresh equity through the proposed IPO, which would strengthen its capital buffer against asset quality shocks and support its growth plans while keeping leverage moderate.
Founded in the early 1990s by Rajendra Setia and his family, SK Finance initially focused on the underserved used-vehicle financing market before expanding into small-ticket secured . The company now operates nearly 680 branches across 13 states.
The bulk of its portfolio is concentrated in Rajasthan, but that share has begun to shrink as the company diversifies across other states including Himachal Pradesh, Uttar Pradesh, Karnataka and, more recently, Telangana.
PE backing
Over the years, the company has raised capital from several funds. As of 31 December 2025, Norwest, TPG, Baring Private Equity India, Evolvence and 360 ONE’s Special Opportunities Fund held a combined 62.34% stake in SK Finance, with the balance held by the promoter group, according to an India Ratings report.
It has also secured funding from other firms such as Motilal Oswal Investment Advisors, Duro Capital, Axis Alternatives, Ananta Capital, Banyan Tree Growth Capital and Mirae Asset Venture Investments, according to online reports.
SK Finance’s loan book has been growing steadily, led by an increase in the number of branches and an improvement in assets under management (AUM) per branch. In FY26, it posted AUM of ₹15,750 crore, up from ₹13,260 crore the previous year, according to the credit rating report. Profit after tax rose to ₹431 crore from ₹380 crore in FY25.