TVS Credit Services raises equity capital of Rs 480 cr from Premji Invest
Non-bank finance company TVS Credit Services Ltd has raised its Rs 480 crore capital from Premji Invest to support its growth plan including progress in its digitization journey, the city-based company said on Saturday.
Premji Invest, the investment arm of Wipro founder Azim Premji’s endowment, will acquire a 9.7 per cent stake in TVS Credit for Rs 737 crore as part of the deal across a combination of primary and secondary investments.
The seed capital raised 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 Services said in a statement that with this capital injection, the company aims to accelerate its mission of fulfilling India’s growing aspirations by providing suitable financing options.
Sudarshan Venu, Chairman, TVS Credit said, “TVS Credit has shown exceptional performance, achieving strong and profitable growth. Within a short period of time, the assets under management of our company have 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 clients and generate higher growth momentum. I have deep respect for Premji Invest and I am delighted to have you as their partner,” he said.
“With their deep understanding of the Indian consumer landscape and financial services industry, Premji Invest will bring strategic value and accelerate our growth plans,” said Venu.
“We are delighted to partner with TVS Credit on their journey to drive financial inclusion by providing easier access to a range of innovative financial products at affordable prices,” said TK Kurian, CEO of Premji Invest and Managing Partner.
“TVS Credit proposes to leverage technology and digital partnerships through a multi-channel approach to broaden its customer base and significantly reduce the friction involved in traditional financing,” Kurian said.
He added, “We are confident that the company, by virtue of its origin, will achieve great success and continue to build significant value for all stakeholders.”
Nomura Financial Advisors and JM Financial acted as financial advisors while Khaitan & Partners acted as legal advisors on the transaction.
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