Arka Fincap Ventures into Insurance Market

Arka Fincap Limited, a NBFC and subsidiary of Kirloskar Oil Engines Limited (KOEL), has been granted a Certificate of Registration to act as a Corporate Agent (composite) by Insurance Regulatory and Development Authority of India (IRDAI). This registration enables Arka to venture into insurance distribution, adding to its existing financial solutions portfolio to cater to the varied requirements of customers.

With this announcement, Arka Fincap would broaden their product portfolio enabling diversification into a new category and capitalize on emerging opportunities. With one of their key values being ‘Customer centric, every time’, this will help the company to empower its customers to achieve business goals while protecting them from uncertainties.

Vimal Bhandari, Executive Vice Chairman & CEO, Arka Fincap Limited, said, “We are excited about this significant milestone in our journey that embodies our commitment to innovation, growth, and staying ahead of the curve in a rapidly evolving financial landscape. With insurance being added to our product portfolio, it will help us to diversify our offerings, driving sustainable growth for our customers and creating long-term value for all our stakeholders.”

Navin Saini, Business Head - Retail SME & MSME, Arka Fincap Limited, said, “In today's dynamic business environment, staying competitive requires agility and adaptability and Arka’s entry into insurance distribution demonstrates willingness to embrace change, explore new avenues, and stay ahead of the competition. With insurance distribution, we can offer a comprehensive cover which can protect our customers from uncertainties, enabling them to secure their future and Get Ahead with confidence.”

Arka Fincap Limited is a customer-focused, digitally enabled, analytics driven, Non-Banking Financial Company which provides secured and unsecured financing solutions to MSMEs, SMEs, developers, and corporates. As on 31st March 2024, Arka Fincap’s AUM stands at INR 5200 Cr with presence at 31 branches across India. The Retail & SME business stands at an impressive AUM of approximately ₹2600 crores contributing to 50% of the overall AUM. Crisil has assigned Arka a rating of AA (-) with a positive outlook for the long-term borrowings and A1 (+) for the short-term borrowings.