TVS Holdings Acquires More than 80% Stake in Home Credit India for INR 554 Crore The transaction was funded through a combination of the proceeds from the recent sale of TVS Holdings' real estate assets and borrowings from capital markets.
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In a strategic move to deepen its presence in India's financial services sector, TVS Holdings Limited has successfully completed the acquisition of an 80.74 per cent equity stake in Home Credit India Finance Private Limited for INR 554 crore. The remaining 19.26 per cent has been purchased by Premji Invest and other associates of TVS Holdings, marking a milestone in the group's expansion strategy, as disclosed in a regulatory filing.
Home Credit India is one of the leading players in consumer financing, having served over 1.6 crore customers across India through both online and offline channels. With an assets under management (AUM) of approximately INR 5,535 crore as of March, 2024, the company boasts a workforce of 3,800 employees and a network of over 50,000 points-of-sale (PoS) spanning 625 cities.
The acquisition aligns with TVS Holdings' long-term vision to expand its financial services portfolio and enhance its offerings to a wider customer base. "The acquisition of Home Credit India marks an important milestone for TVS Holdings. We are thrilled to welcome Home Credit India's talented team and huge customer base of 1.6 crore customers to the TVS family. This transaction underscores our commitment to delivering innovative and inclusive financial solutions. Together with TVS Credit, the Group will now have a lending book of approximately INR 33,000 crore, taking us closer to our book-size goal of INR 50,000 crore in the next three years," said Sudarshan Venu, managing director, TVS Holdings.
The transaction was funded through a combination of the proceeds from the recent sale of TVS Holdings' real estate assets and borrowings from capital markets. The company's strategic decision to exit the real estate sector, citing its capital-intensive nature and prolonged gestation period, has enabled it to channel funds into more productive investment areas.
"We are confident that this acquisition will help the group strengthen its position in the financial services sector, accelerate scale and profitability, and build significant value for all stakeholders," stated TK Kurien, managing partner and chief investment officer, Premji Invest.
