Non-banking finance company TVS Credit Services Ltd has successfully raised equity capital of Rs 480 crore from Premji Invest to fuel its growth plan, including advancing its digitisation journey.
Premji Invest, the investment arm of Wipro founder Azim Premji’s endowment, would pick up a 9.7 per cent equity stake in TVS Credit for Rs 737 crore as part of the transaction via a combination of primary and secondary investments.
The primary capital raised will be utilized by TVS Credit to expand its customer base in new markets, strengthen its channel partner network, and advance its digitization efforts. The company aims to provide convenient financing options and fulfil the aspirations of a growing India.
“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,” said Sudarshan Venu, Chairman of TVS Credit.
Premji Invest CEO and managing partner T K Kurien said: “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 omnichannel approach to widen its customer base and to significantly reduce the friction involved in traditional financing,” Kurien said.
“We are confident that the company, given its parentage, will achieve great success and continue to build significant value for all stakeholders,” he added. Nomura Financial Advisory and JM Financial acted as financial advisors, while Khaitan and Co acted as legal advisors on the transaction.