TVS Credit raises ₹480 crore capital from Premji Invest

TVS Credit Services Ltd, a Non-bank financing company which mainly provides loans for two-wheelers and used cars, has raised equity capital by Rs 480 crore from Premji Invest.

As part of the deal, Premji Invest will buy 9.7 per cent stake in TVS Credit for ₹737 crore via a mix of primary and secondary investment, according to a statement.

“Within a short period, TVS Credit Assets Under Management (AUM) has crossed Rs.20,000 crore backed by a strong balance sheet. As we embark on the next phase of our journey, our focus will be on leveraging digitization to reach new customers and drive higher growth momentum through their deep understanding of the consumer landscape. Indian financial services industry, Premji Invest will bring strategic value and accelerate our growth plans. TVS Motor Company.

The capital will be used to further TVS Credit’s efforts in expanding its customer base into new markets, increasing its channel partner network, and furthering its digitization journey.

TVS Credit has built a strong customer base of more than Rs 1 crore, which is served by a vast network of more than 40,000 touch points across the country. In FY23, the company reported AUM of Rs. 20,602 crore, an increase of 48 per cent over the previous year. The company expects its assets under management to grow to more than INR 50,000 crore in the next few years.

Read also: TVS Credit Services reported a 76% rise in Q4 net profit to Rs.111 crore

“TVS Credit proposes to leverage technology and digital partnerships through an omnichannel approach to broaden its customer base and significantly reduce the friction involved in traditional financing. We are confident that the company, given its origin, will continue to build significant value for all stakeholders,” said TK Kurien, CEO and Managing Partner, Premji Invest.

Nomura Financial Advisors and JM Financial acted as financial advisors and Khaitan & Partners acted as legal advisors on the transaction.