TVS Credit Services, a prominent non-banking financial company (NBFC) based in Chennai, has successfully raised Rs. 480 crores in equity capital from Premji Invest. In a transformative transaction, Premji Invest will acquire a 9.7% equity stake in TVS Credit, amounting to Rs. 737 crores, through a combination of primary and secondary investments.
The infusion of funds will provide significant support to TVS Credit’s strategic initiatives, which include expanding its customer base, strengthening its channel partner network, and advancing its digital transformation efforts. The company aims to leverage these investments to consolidate its position in the market and accelerate its growth trajectory.
Expressing satisfaction with the partnership, Sudarshan Venu, Chairman of TVS Credit, acknowledged the exceptional performance and robust growth the company has achieved. With its Assets Under Management (AUM) surpassing an impressive Rs. 20,000 crores, Venu emphasized TVS Credit’s commitment to utilizing digital technologies to reach new customers and ensure continued success.
TK Kurien, CEO and Managing Partner of Premji Invest, highlighted TVS Credit’s mission of promoting financial inclusion. He emphasized the importance of leveraging technology and forming digital partnerships to expand the customer base and streamline the traditional financing process. Kurien expressed confidence in TVS Credit’s potential for success and its ability to generate value.
TVS Credit has been at the forefront of providing inclusive and affordable credit options to individuals from diverse socio-economic backgrounds. Through its extensive network of over 40,000 touchpoints across the country, the company has made financial services accessible to a wide range of customers.
In the fiscal year 2022-23, TVS Credit reported an impressive AUM of Rs. 20,602 crores, representing a remarkable growth rate of 48% compared to the previous year. With the new capital infusion, the company aims to continue expanding its operations and targets exceeding Rs. 50,000 crores in AUM in the coming years.
Nomura Financial Advisory and JM Financial served as financial advisors for the transaction, ensuring its smooth execution. Additionally, Khaitan & Co. provided legal counsel, ensuring compliance and legal clarity throughout the process.
The partnership between TVS Credit Services and Premji Invest signifies a significant milestone for both entities. With a shared vision for growth, financial inclusion, and leveraging digital technologies, this collaboration positions TVS Credit to enhance its market presence and drive innovation in the NBFC sector.
