Arka Fincap Limited (AFL)

What Arka Fincap Limited (AFL) does

Arka Fincap Limited is a Mumbai-headquartered, RBI-registered non-banking financial company (NBFC) and wholly owned subsidiary of Kirloskar Oil Engines Limited, established in 2018 (as Kirloskar Capital) and rebranded to Arka Fincap in October 2019. The company provides secured financing solutions across four core verticals: Used Vehicle Loans (SCV, LCV, ICV, MHCV, and tractors), Loan Against Property (up to Rs 5 crore, tenure up to 15 years), Secured Business Loans (up to Rs 50 lakh, tenure up to 15 years), and Wholesale Lending (corporate lending, urban infrastructure, real estate, and syndication). Its primary customer base is MSMEs, self-employed individuals, and small business owners in Tier 2, 3, and 4 cities, with a stated base of 100,000+ customers served across 100+ branches by 1,500+ dedicated employees, and current assets under management of approximately Rs 8,000 crore. A dedicated 'Uday' small-ticket LAP product (Rs 10-30 lakh) targets MSMEs in underserved geographies, and an IRDAI Corporate Agency license (June 2024) adds insurance distribution as an adjacent revenue stream.

The business is built on an analytics-driven, digitally enabled lending platform that uses big-data-based creditworthiness assessment to support fast (24-hour) disbursal, supported by Customer, DSA, and Partner portals for self-service and channel-based origination. The go-to-market is sales-led through a multi-channel distribution mix: company-owned branches for direct retail acquisition, co-lending with Central Bank of India (Arka originates/servicing, Central Bank takes 80% of MSME loans), and embedded finance partnerships with GrayQuest, LendingKart, and WeRize. Revenue is primarily interest income from lending products, supplemented by insurance distribution commissions and capital-market fundraising via public NCD issues (Rs 300 crore at 9.29%-9.99% effective yields). Q3 FY2025 quarterly sales were Rs 227.02 crore (up 8.27% YoY), with a standalone net profit of Rs 11.39 crore (down 48.39% YoY) and operating profit margin of 62.51% (down from 72.40% YoY), signaling topline growth alongside margin compression. Capital backing comes from a Rs 1,000 crore Kirloskar Group anchor infusion (2019) and a CRISIL AA-/Positive credit rating, with Vimal Bhandari as Executive Vice-Chairman & CEO and Samrat Gupta (ex-Tata Motors Finance CEO) as Managing Director since October 2024.

Name

Arka Fincap Limited (AFL)

Legal name

Arka Fincap Limited

Website

https://arkafincap.com

Company type

Private

Founded year

2018

Operating status

Operating

Headcount range

101–250 employees

Short description

Arka Fincap Limited is a Mumbai-based NBFC and Kirloskar Oil Engines subsidiary providing secured retail and wholesale financing, including Loan Against Property, Secured Business Loans, Used Vehicle Loans, and wholesale lending, to MSMEs and corporates across India's Tier 2-4 cities.

Ownership category

akta.pro rank

Product category

Non-Banking Financial Services (NBFC) / MSME Lending

NAICS

Sales Financing (52222), Sales Financing (522220)

SIC

Miscellaneous Business Credit Institution (6159), Short-Term Business Credit Institutions (6153)

akta.pro primary industry

Equipment & Asset Finance (SME) (FSAKAGAF)

akta.pro secondary industries

Fleet & Commercial Vehicle Finance (FSAKADAE), SME Equipment & Asset Finance (Leasing, Fleet, Capex) (FSABABAH), Debt Advisory & Financing Advisory (FSAEAGAD)

Keywords

• MSME lending
• Loan against property
• Used vehicle finance
• Wholesale lending
• Secured business loans

Headquarters

HQ city

Mumbai

HQ country

India

HQ region

Asia

Offices4 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D, Infrastructure, Marketing or Sales

Revenue model

1. Interest Income from Lending: Primary revenue from interest charged on loans including Used Vehicle Loans, Loan Against Property, Secured Business Loans, and Wholesale Lending. Sales rose 8.27% YoY to Rs 227.02 crore in Q3 FY2025.
2. Insurance Distribution: Corporate Agency License from IRDAI allows Arka to distribute insurance products as a new revenue stream
3. NCD Public Issue: Non-convertible debentures issuance for raising capital - Rs 300 crore issue with coupon rates between 9-10% per annum

Pricing tiers

Go-to-market motion2 records

Distribution channels6 records

Marketing channels5 records

Core offering

Arka Fincap is an NBFC providing secured and unsecured financing solutions to MSMEs, small business owners, and corporates across India through secured business loans, used vehicle loans, loan against property, and wholesale lending. Its core product set spans Loan Against Property (up to Rs 5 crores, up to 15-year tenure), Secured Business Loans (up to Rs 50 lakhs, up to 15-year tenure), Used Vehicle Loans (SCV/LCV/ICV/MHCV/Tractors), and Wholesale Lending (Corporate Lending, Urban Infrastructure, Real Estate, Syndication).

Differentiator

Problem solved

Functional benefit

Products and services

• Loan Against Property (LAP) Secured loan product against residential or commercial property with ticket sizes up to Rs 5 crores and tenure up to 15 years, targeting MSME borrowers and small business owners for business and working capital needs.
• Secured Business Loan Secured business loan offering up to Rs 50 lakhs with tenures of up to 15 years for MSMEs, small business owners, and self-employed individuals needing working capital or growth financing.
• Used Vehicle Loan Secured loan product financing pre-owned commercial vehicles, sub-categorized into Used SCV, Used LCV, Used ICV, Used MHCV, and Used Tractor Loans, designed for fleet operators, transporters, and small business owners in the transportation and agriculture sectors.
• Wholesale Lending Tailored structured funding solutions for institutional and corporate clients including corporate term loans, urban infrastructure project finance, real estate development financing, and loan syndication and distribution services.
• Uday - Small Ticket LAP for MSMEs Small ticket sized loan against property product addressing credit needs of MSMEs and small businesses in Tier 2, 3, and 4 cities with ticket sizes between Rs 10 lakh and Rs 30 lakh.
• Insurance Distribution (IRDAI Corporate Agency) Insurance distribution service enabled by IRDAI Corporate Agency License, allowing Arka Fincap to distribute insurance products to its customers alongside its lending portfolio.
• Non-Convertible Debentures (NCDs) Public Issue Raising capital instrument offered to investors through public issue of secured, listed, redeemable non-convertible debentures with three tenors (2 years, 3 years, 5 years) and quarterly or annual interest payment options.

Quantifiable outcome

• 100,000+ satisfied customers
• +3 more outcomes

Named customers8 records

Segments5 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Four partnerships are on record, tiered core and minor.

• Central Bank of IndiacoreChannel Partner/ Reseller/ Distributor · 17 July 2024Co-lending partnership where Arka originates and processes MSME loan proposals under jointly formulated credit parameters and eligibility criteria. Central Bank of India takes 80% of MSME loans onto its books while Arka services the accounts throughout the loan lifecycle.
• GrayQuestminorStrategic or Co-development PartnerPartnership with India's leading fee payment platform for education sector. GrayQuest creates customized credit solutions for education fees, and Arka provides funding support for salaried borrowers to make smart, fast and easy decisions when paying education fees.
• LendingKartminorStrategic or Co-development PartnerPartnership with leading retail lending marketplace that uses technology built on big data analysis to accurately assess credit worthiness. Together they empower small businesses to avail financial solutions.
• WeRize (Wortgage Finance Private Limited)minorStrategic or Co-development PartnerPartnership with WeRize, India's first socially distributed full stack fintech platform for emerging middle-class families. Wortgage Technologies does customer acquisition while WFPL handles underwriting support, servicing, and recovery.

Scale indicators13 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• Five Star Business Finance: Listed NBFC providing secured small-business loans and LAP to self-employed MSMEs in semi-urban and rural India, directly overlapping Arka's secured MSME lending focus.
• Veritas Finance: NBFC lending to MSMEs via secured business loans and LAP in underserved geographies, closely mirroring Arka's grassroots secured-lending model.
• Vistaar Finance: MSME-focused NBFC offering secured business loans and LAP to small businesses in Tier 2-4 towns, the same customer segment and product mix as Arka.
• SK Finance: NBFC combining used commercial-vehicle finance with MSME business loans, directly comparable to Arka's used-vehicle plus secured-business-loan offering.

Broad incumbents

• IIFL Finance: Large NBFC active in LAP, business loans and gold loans for MSMEs, competing with Arka's secured-property and business-loan lines.
• Shriram Finance: Leading NBFC in used commercial-vehicle and MSME finance, competing in Arka's core vehicle-loan and small-business segments at national scale.
• Cholamandalam Investment and Finance: Large diversified NBFC in vehicle finance, LAP and SME loans; overlaps Arka's products but at far greater scale and portfolio breadth.
• Poonawalla Fincorp: Diversified retail and MSME NBFC offering LAP and business loans, overlapping Arka's secured lending though with a broader product suite.

Emerging players

• Kinara Capital: Fintech-driven NBFC providing collateral-light MSME loans across Indian states, intersecting Arka's MSME lending mission in underserved markets.
• Aye Finance: Tech-enabled MSME lender serving micro-enterprises with cluster-based underwriting, overlapping Arka's small-business borrower base though more unsecured/micro focused.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/arka-investment-advisory-services-private-limited

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Arka Fincap Limited (AFL)