Non-bank finance firm TVS Credit Services Ltd has successfully raised an equity capital of Rs 480 crore from Premji Invest to fuel its growth plan, including advancing its digitization journey, the city-based company said on Saturday. Premji Invest, the investment arm of Wipro founder Azim Premji’s endowment, would acquire a 9.7 percent equity stake in TVS Credit for Rs 737 crore as part of the transaction through a combination of primary and secondary investments.
The primary capital raised would be used to further strengthen TVS Credit’s efforts in expanding its customer base in new markets, increasing its channel partner network and advancing its digitization journey.
With this capital injection, the company aims to accelerate its mission to meet the aspirations of a growing India by offering convenient financing options, TVS Credit Services said in a statement.
“TVS Credit has demonstrated exceptional performance and delivered robust and profitable growth. In a short span of time, our company’s assets under management have crossed Rs 20,000 crore, supported by a strong balance sheet,” said Sudarshan Venu, Chairman of TVS Credit.
“As we embark on the next phase of our journey, our focus will be on leveraging digitalization to reach new customers and achieve higher growth momentum. I have deep respect from Premji Invest and am delighted to have them as a partner,” he said.
“With their deep understanding of the Indian consumer landscape and financial services, Premji Invest will add strategic value and accelerate our growth plans,” said Venu.
Premji Invest CEO and managing partner TK Kurien said, “We are excited to partner with TVS Credit on their journey to drive financial inclusion by providing easier access to a range of affordable and innovative financial products.” partnerships through an omnichannel approach to expand its customer base and significantly reduce the friction associated with traditional financing,” said Kurien.
“We are confident that given its heritage, the company will achieve great success and continue to create 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.
(This story has not been edited by News18 staff and was published from a syndicated news agency feed – PTI)