Non-banking finance company TVS Credit Services said on Saturday it has raised equity capital of Rs 480 crore from Premji Invest to fuel its growth plan, including advancing its digitisation journey.
Premji Invest, the investment arm of Wipro founder Azim Premji’s endowment, will pick 9.7% equity stake in TVS Credit for Rs 737 crore as part of the transaction via a combination of primary and secondary investments.
The primary capital raised would be utilised to further strengthen the efforts of TVS Credit in expanding its customer base in new markets, increasing the channel partner network, and advancing its digitisation journey.
With this infusion of capital, the company aims to accelerate its mission of fulfilling the aspirations of a growing India by providing convenient financing options, TVS Credit Services said in a statement.
“TVS Credit has demonstrated exceptional performance, achieving robust and profitable growth. Within a short span of time, our company’s Assets Under Management have surpassed Rs 20,000 crore supported by a strong balance sheet,” TVS Credit Chairman Sudarshan Venu said.
“With their deep understanding of the Indian consumer landscape and the financial services industry, Premji Invest will bring strategic value and expedite our growth plans,” Venu said.
Premji Invest’s CEO and managing partner TK Kurien said: “We are delighted to partner with TVS Credit in their journey to drive financial inclusion by providing easier access to a range of affordable and innovative financial products.”
“TVS Credit proposes to leverage technology and digital partnerships through an omnichannel approach to widen its customer base and to significantly reduce the friction involved in traditional financing,” Kurien said.
“We are confident that the company, given its parentage, will achieve great success and continue to build significant value for all stakeholders,” he added.
Nomura Financial Advisory and JM Financial acted as financial advisors while Khaitan and Co acted as legal advisors on the transaction.
(With edits from YourStory)