TVS Holdings acquires 80.74% stake in Home Credit India for Rs 554 Cr
The remaining 19.26% stake has been acquired by Premji Invest and other TVS Holdings associates.
TVS Holdings Limited has completed the acquisition of an 80.74% equity stake in Home Credit India Finance Private Limited for Rs 554 crore.
The remaining 19.26% stake has been acquired by Premji Invest and other TVS Holdings associates.
This acquisition aims to strengthens TVS Holdings’ presence in the financial services sector and aligns with its strategy to enhance financial inclusion in India while maintaining financial stability.
“The acquisition of Home Credit India marks an important milestone for TVS Holdings. We are thrilled to welcome Home Credit India’s talented team and huge customer base of 1.6 crore customers to the TVS family. This transaction underscores our commitment to delivering innovative and inclusive financial solutions. Together with TVS Credit, the Group will now have a lending book of Rs 33,000 Crore, taking us closer to our book-size goal of Rs. 50,000 Cr in the next three years,” Sudarshan Venu, Managing Director, TVS Holdings, said.
Home Credit India, a subsidiary of Home Credit N.V., has been operational in India since 2012, expanding its customer base and service network nationwide.
The company operates in 625 cities with a network of over 50,000 points-of-sale and an employee base of 3,800. It has served over 1.6 crore customers through online and offline channels, with an Assets Under Management (AUM) of approximately Rs 5,535 crore as of March 31, 2024.
It primarily focuses on New-to-Credit customers by providing consumer durable loans for low-cost smartphones and personal loans.
TVS Holdings’ expansion into financial services follows its divestment from the capital-intensive real estate sector. The acquisition was funded through proceeds from the sale of real estate assets and capital market borrowings.
The transaction is expected to drive synergies in collections, cost efficiencies, digital capabilities, and cross-selling opportunities within the TVS Holdings Group.
“We are confident that this acquisition will help the group strengthen its position in the financial services sector, accelerate scale and profitability and build significant value for all stakeholders” said TK Kurien, Managing Partner and Chief Investment Officer, Premji Invest.
Edited by Jyoti Narayan