NBFC Ess Kay Fincorp Ltd is set to secure $40 million in the debt funding round from the FMO, the Netherland development finance company.
FMO revealed in a disclosure that the Ess Kay would use the funds to enable its borrowers to buy and convert the gasoline and diesel-powered cars into the compressed natural gas vehicles.
FMO revealed that the funding would help to grow the CNG portfolio of the Ess Kay, which primarily helps the customers in both the semi-urban and rural India buy used vehicles and run the small and medium-sized enterprises.
The funding will also help to promote cleaner technologies and improve air quality in India. FMO revealed that it would help the FMO to achieve its goal of servicing underserved entrepreneurs as Ess Kay targets first-time borrowers.