# Five-Star Business Finance

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/five-star-business-finance

- Industry: Financial Services
- Headquarters: Chennai, India
- Website: http://www.fivestargroup.in
- Total disclosed funding: $52M
- Latest round: Series C (Aug 18, 2017)
- Investors on record: 4

## About

Founded in 1984 and based in Chennai, India, Five-Star Business Finance Limited operates as a finance company that provides business, and mortgage loans for small and medium enterprises. The company was founded by its CEO K. Rangarajan. In March 2021, a consortium led by KKR, Norwest Venture Partners, Sequoia Capital, and TVS Capital Funds invested USD 234 million in Five-Star Business Finance Limited, and in November 2021, the company filed preliminary papers with capital markets regulator Sebi to raise up to INR 27,520 million through an initial public offering. As of 2021, the company operates 262 locations spread across 126 districts in eight states and one union territory, and has over 157,333 clients.

Five-Star Business’s services include small business and mortgage loans, which are designed to suit borrowers' needs for the development and expansion of new and existing businesses, as well as the settlement of unpaid debts. The borrowers' property, which is mostly self-occupied residential property, serves as collateral for the loans. The company's normal loan offerings run from INR 1 lakh to INR 10 lakhs, with terms ranging from 24 to 84 months. The company's total income increased by 34% to INR 10,510 million in FY21, up from INR 7,870 million in FY20, while its net profit increased by 37% to INR 3,590 million in FY21, up from INR 2,620 million in FY20.

## Funding rounds

- Series C, Aug 18, 2017, $50M — Matrix Partners, Hong Shan, Norwest Venture Partners, Morgan Stanley Private Equity Asia
- Series A, Feb 21, 2014, $2.7M — Matrix Partners

## Investors

- Matrix Partners (https://capitalatlas.ai/funds/matrix-partners) — Series A, Series C
- Hong Shan — Series C
- Norwest Venture Partners (https://capitalatlas.ai/funds/norwest-venture-partners) — Series C
- Morgan Stanley Private Equity Asia (https://capitalatlas.ai/funds/morgan-stanley-private-equity-asia) — Series C