TVS Credit Services, a NBFC, today successfully raised equity capital of Rs 480 crore from Premji Invest. As part of the transaction, Premji Invest will acquire a 9.7 per cent equity stake in TVS Credit for Rs 737 crores, via a combination of primary and secondary investment.
According to the company, the primary capital will be utilised to further strengthen TVS Credit’s efforts in expanding its customer base in new markets, increasing the channel partner network, and advancing its digitisation journey.
With this infusion of capital, the company aims to accelerate its mission of fulfilling the aspirations of a growing India by providing convenient financing options.
Commenting on this funding, Sudarshan Venu, Chairman, TVS Credit, said, “TVS Credit has demonstrated exceptional performance, achieving robust and profitable growth. Within a short span of time, our Company’s Assets Under Management (AUM) have surpassed Rs. 20,000 crores, supported by a strong balance sheet. As we embark on the next phase of our journey, our focus will be on leveraging digitisation to reach new customers and achieve a higher growth momentum. I have deep respect for Premji Invest and am delighted to have them as a partner. With their deep understanding of the Indian consumer landscape and the financial services industry, Premji Invest will bring strategic value and expedite our growth plans.”
“We are delighted to partner with TVS Credit in their journey to drive financial inclusion by providing easier access to a range of affordable and innovative financial products. TVS Credit proposes to leverage technology and digital partnerships through an omni-channel approach to widen its customer base and to significantly reduce friction involved in traditional financing. We are confident that the company, given its parentage, will achieve great success and continue to build significant value for all stakeholders,” said TK Kurien, CEO and Managing Partner, Premji Invest.
In FY23, the company reported an AUM of Rs. 20,602 crore representing a growth of 48 per cent from the previous year. It expects its AUM to grow over Rs 50,000 crore in the next few years. With its strong foundation, digital orientation, and strategic partnerships, the Company remains focused on promoting financial inclusivity, driving innovation, and delivering value to its stakeholders.
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