TVS Holdings to acquire 80.74% stake in Home Credit India for ₹554 crore

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TVS Holdings Ltd has announced its plan to acquire 80.74% of the equity stake in Home Credit India Finance Private Ltd for ₹554 crore. The Board of TVS Holdings has approved the proposal, and the remaining 19.26% of the equity stake will be purchased by Premji Invest and other associates.

Home Credit India, a part of the Home Credit Group, is an international non-banking financial institution founded in 1997 in the Czech Republic and headquartered in the Netherlands.

Since it entered into India in 2012, Home Credit has served over 1.6 crore customers in India, both online and offline. As of March 31, 2024, Home Credit had an Assets under Management (AUM) of about ₹5,535 crore. The company employs 3,800 people and has a network of over 50,000 points-of-sale (PoS) spread across 625 cities in India. It primarily focuses on New-to-Credit (NTC) customers, offering consumer durable loans for low-cost smartphones, along with personal loans.

“Financial services represent a huge opportunity as this growth unfolds. Home Credit is a significant player in consumer financing with much potential. Together with TVS Credit, the Group will now have a lending book of about ₹31,000 crore, taking us closer to our book-size goal of Rs.50,000 crore in the next three years. Collectively, we will now be serving three crore financial services customers across more than 90,000 touch points pan India, said Sudarshan Venu, Managing Director, TVS Holdings.

Home Credit will operate as a subsidiary of TVS Holdings, maintaining its brand identity and focussing on its unique customer segment, while benefiting from the resources and support of TVS Holdings Group, according to a statement.

“As an existing shareholder in TVS Credit, we are delighted to partner with TVS Holdings in the home credit India acquisition. We are confident that this acquisition will help the company accelerate scale and profitability and build significant value for all stakeholders,” said TK Kurien, Managing Partner, and Chief Investment Officer, Premji Invest.

Upon signing a sale and purchase Agreement, TVS Holdings and Home Credit will seek approvals from the Competition Commission of India and the Reserve Bank of India, respectively.