Chennai, NFAPost: TVS Credit Services Limited, a prominent non-banking financial company (NBFC) in India, has announced its successful equity capital raise of INR 480 crores from Premji Invest. The investment firm will acquire a 9.7% equity stake in TVS Credit, valued at INR 737 crores, through a combination of primary and secondary investments.
The primary capital infusion will be utilized to bolster TVS Credit’s efforts in expanding its customer base in new markets, enhancing its channel partner network, and advancing its digital transformation journey. With this funding, the company aims to accelerate its mission of providing convenient financing options and fulfilling the aspirations of a growing India.
Sudarshan Venu, Chairman of TVS Credit, expressed his delight at the funding and highlighted the company’s exceptional performance and robust growth. He emphasized the focus on leveraging digitization to reach new customers and achieve higher growth momentum. Venu expressed his deep respect for Premji Invest and welcomed them as a partner, noting that their understanding of the Indian consumer landscape and financial services industry will bring strategic value and expedite TVS Credit’s growth plans.
TK Kurien, CEO and Managing Partner of Premji Invest expressed their excitement about partnering with TVS Credit to drive financial inclusion through easier access to affordable and innovative financial products. Kurien emphasized TVS Credit’s plan to leverage technology and digital partnerships to expand its customer base and reduce traditional financing friction. He expressed confidence in the company’s ability to achieve significant success and create value for stakeholders given its parentage.
TVS Credit has been actively providing inclusive and affordable credit options, empowering individuals from diverse socio-economic backgrounds and contributing to their financial well-being. The company boasts a strong customer base of over 10 million individuals, served through a vast network of 40,000+ touchpoints across India. In the fiscal year 2023, TVS Credit reported Assets Under Management (AUM) of INR 20,602 crores, representing a remarkable growth of 48% from the previous year. The company projects its AUM to exceed INR 50,000 crores in the coming years. With its solid foundation, digital orientation, and strategic partnerships, TVS Credit remains committed to promoting financial inclusivity, driving innovation, and delivering value to stakeholders.
Nomura Financial Advisory and JM Financial acted as financial advisors, while Khaitan & Co. served as the legal advisor for the transaction.
TVS Credit Services Limited is a leading NBFC registered with the Reserve Bank of India. With a wide network of over 40,000 touchpoints across India, the company aims to empower Indians to achieve their dreams and fulfil their aspirations. As the top financier for TVS Motor Company Limited and a prominent tractor financier, TVS Credit has established a fast-growing presence in Used Car Loans, Consumer Durable Loans, Used Commercial Vehicle Loans, and Unsecured Loans segments. Supported by advanced technologies and data analytics, the company has served over 10 million satisfied customers with the help of its dedicated team of 19,000+ employees.
Premji Invest (PI) primarily supports the philanthropic initiatives of the Azim Premji Foundation, a not-for-profit organization focused on improving the lives of the underserved and underprivileged in society. PI invests in both Indian and overseas ventures, with a focus on emerging and disruptive technologies and nurturing the spirit of entrepreneurship. The investment firm strongly believes in the transformative power of technology to improve productivity and drive social upliftment. PI’s core investment areas include financial services, technology, consumer, and healthcare.
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