Muthoot Finance raises Rs 157 Cr PE
Leading NBFC Muthoot Finance Limited (MFIN) today announced that it has raised Rs.157 crores in its first institutional round of funding from Baring Private Equity Partners India and Matrix Partners India for a minority stake in the Company. Muthoot Finance is the largest gold loan company in India. Source: ICRA Management Consulting Services (IMACS) report on “Gold Loans Market in India 2009”. The Company has a loan book exceeding Rs.9000 crores and 1,800 branches across the country. This capital infusion will further strengthen the capital base of the Company.
Commenting on the PE investment M.G. George Muthoot, Chairman, Muthoot Finance Limited, said: The Muthoot Group has been engaged in the business for the last 123 years and has a unblemished track record, trust and goodwill among customers and stakeholders alike. The inclusion of global investors into our midst is a significant milestone and marks a new chapter in our journey. The support from such reputed investors is an endorsement of the robust business enterprise that we have nurtured and built over our lifetimes and that of our ancestors. We hope to realize the true potential of the business and our vision to be the leading provider of financial services in this country with their backing and support.”
George Alexander Muthoot , Managing Director, Muthoot Finance Limited, said: “It’s a great moment for us. We are glad about transition from a 100% family owned business and institutionalize higher level of governance standards as we build the business to greater heights in the days to come. This was the first step in this direction. We hope this investment by external investors will re-inforce the confidence and comfort that our lenders, rating agencies and regulators bestow on us. The fact that pedigreed investors like Baring India and Matrix India have partnered with us is a testimony to our endeavors in this direction and we welcome them to be a part of our journey in the future.”
“The entry of these two leading Private Equity Fund houses as stakeholders will add impetus to future strategic initiatives which will have a direct bearing on the cost of liabilities leading to more efficient creation of shareholders wealth” said, K.P. Padmakumar, Executive Director, Muthoot Finance Limited.
Rahul Bhasin, Managing Partner of Baring Private Equity Partners India said on the occasion “We are excited with the opportunity to partner with one of the leading enterprises in Kerala and in India. Under the able guidance of the promoter group the company has constantly innovated to deliver customer-oriented products & personalized service delivery to set new benchmarks in the gold loan industry. It is today a market leader and one of the most respected brands in financial services in India. Having been in business for last the 250 years ourselves we can appreciate the years of arduous effort required to build a brand of this stature and look forward to a long term association with the company for collectively achieving greater successes.”
"Muthoot Finance is the largest gold loan company in India and has an opportunity to be a leader in the financial services industry. With a branch network of over 1,800 branches its one of the largest distribution footprints in the country. We have tracked the company for over 2 years and are excited to be partners with the exceptional promoter group and management team.” said Rishi Navani, Co–founder & Managing Director, Matrix India.
About Muthoot Finance Limited
The Company is promoted by four brothers Mr. M.G. George Muthoot , Mr. George Alexander Muthoot , Mr. George Thomas Muthoot and Mr. George Jacob Muthoot collectively operating under the brand name of ‘The Muthoot Group’. The group is in Gold Loan business for the last seven decades and in 2001 got registered MFIN as an NBFC with RBI. MFINs specialized end-to-end credit processes, from appraisal to disbursement, the experience of the promoters’ in the business of financing against gold jewellery, the company’s strong brand image and wide network have enabled the company to significantly scale up its operations over the last several years. Further information is available at www.muthootgroup.com
About Baring Private Equity Partners India
Having partnered with Indian entrepreneurs for over a decade, Baring India advised funds have an enviable track record of helping build outstanding businesses in 20+ companies. These funds have its interests are focused on key verticals of IT/ IT Enabled Services; Life Sciences; Banking Financial Services and Insurance (BFSI); Energy and Consumer goods. Baring Funds provide long-term growth capital with average holding period of over 5 years and currently have more than USD One billion of assets under management. Baring Funds started their investments in Indian entities in 1997 with the first Baring Fund being rated as the best performing fund of 1998 vintage.
Further information is available at www.bpepindia.com
About Matrix Partners India
Matrix Partners India is an investment firm with INR 1,500 crores under management. The firm invests in companies targeting the Indian domestic market with a sector independent investment strategy focused on generating exceptional returns. The firm invests up to INR 125 crores in a company depending on its stage of development and has invested in several companies including BSFL, FIITJEE, Muthoot Finance, Siesta Hospitality and Tree House. The Mauritius fund’s investors include leading university endowments and family foundations. Matrix Partners has a global network of funds investing in the US, China and India with $2 billion under management. Further information is available at www.matrixpartners.in