Partners Group to acquire majority stake in Infinity Fincorp for Rs 1,950 Cr

Global private markets firm Partners Group is set to acquire a significant majority stake in Mumbai-based non-banking financial company (NBFC) Infinity Fincorp Solutions for Rs 1,950 crore, marking one of the largest private equity transactions in India’s NBFC sector this year.

The transaction includes a primary capital infusion of Rs 600 crore and a secondary share purchase from existing shareholders, including Indium IV (Mauritius) Holdings Limited, a fund managed by Global Opportunity Advisors (Mauritius) Limited, which is advised by True North Managers LLP and other shareholders.

Existing investor Jungle Ventures also participated in the round.

The deal is subject to regulatory approval by the Reserve Bank of India (RBI).

Infinity, which primarily lends to small and medium enterprises (SMEs) in Tier II and III towns across eight Indian states, plans to use the capital to accelerate branch expansion and invest in technology to improve customer onboarding and lending operations.

The company currently operates over 120 branches, has an AUM of over Rs 1,200 crore, and serves around 50,000 customers.

"The MSME segment contributes a significant share of national GDP, and we expect demand for credit will continue to rise. We believe non-bank lenders such as Infinity have advantages in catering to these enterprises due to their highly specialised operations that are better suited to providing customised solutions," said Vageesh Gupta, Managing Director, Private Equity, Partners Group.

Founded by Shrikant Ravalkar, who serves as MD & CEO, Infinity focuses on secured lending to MSMEs across trading, agriculture, and manufacturing sectors, many of which are based in smaller towns and semi-urban India. The company employs more than 1,500 people.

"We are dedicated to empowering entrepreneurs and business owners across Tier III towns in India, through flexible, need-based lending solutions that are designed to create long-term impact," said Ravalkar. “We welcome Partners Group and intend on leveraging their operational expertise to further broad base our mission of serving the Indian MSME sector.”

Murali Krishnan Nair, Member of Management, Private Equity at Partners Group, said, “Our strong thematic focus on non-bank lenders in India and experience in scaling Aavas (Aavas Financiers) positions us well to work closely with Shrikant Ravalkar and his team to drive the next round of value creation.”

Indium IV is exiting its position in this transaction.

“Within a few years of inception Infinity has scaled up remarkably, demonstrating strong credit quality and healthy profitability,” said Nitin Nayak, nominee of Indium IV on Infinity’s board. “We thank Partners Group for their endorsement of the Company’s performance and potential and welcome them as the new majority partner.”

Jungle Ventures, which continues to remain invested in the company, reiterated its support. "Infinity is not only scaling rapidly but doing so with solid unit economics and prudent risk oversight," said Arpit Beri, the firm’s nominee on Infinity’s board.

Beams Fintech Fund, another existing investor, also reaffirmed its commitment. "Partners Group entry marks a strong validation for the company, and given their vast experience in financial services, we believe Infinity is poised to build a strong business,” said Sagar Agrawal, Founder and Managing Partner of Beams.

Avendus Capital acted as the exclusive financial advisor to Infinity and Indium IV for the transaction.

Partners Group, which manages over $150 billion globally, has invested approximately $2.5 billion in India to date. Past investments include Vishal Mega Mart, which recently went public.