Sudarshan Venu | Photo source: File photo
TVS Holdings Ltd. (TVSH), Premji Invest and other associates will acquire 100% stake in Home Credit India Finance Pvt. Ltd. for a total consideration of ₹680 crore to expand its presence in the consumer finance space.
TVSH has agreed to buy 80.74% stake from Dutch Home Credit India BV and Czech Home Credit International AS for a consideration of ₹554 crore, the remaining 19.26% stake will be purchased by Premji Invest and other associates.
“Financial services represents a huge opportunity for penetration and growth in India,” TVSH CEO Sudarshan Venu said at a press meet.
“Together with TVS Credit, the group is doubling down on our investment and is really looking forward to capitalizing on the resulting opportunity to build a book worth ₹50,000 crore over the next three years,” he said.
Stating that this acquisition is in line with TVSH Group’s strategy to play a leading role in deepening financial penetration in India, he said that in total the company will have a portfolio of ₹ 32,000 crore, serving over 3 crore financial services customers across 90,000 touchpoints in India.
“With over 50,000 outlets and 3,800 employees spread across 625 cities across India, Home Credit India will focus on fresh credit customers (NTCs) by enabling them sustainable consumer loans for low-cost smartphones as well as personal loans,” he said.
Home Credit will operate as a subsidiary of TVS Holdings, maintaining its brand identity and focusing on a unique customer segment. As of March 2023, it had assets under management of ₹ 5,535 crore, had a turnover of ₹ 1,720 crore and a net profit of ₹ 80 crore.
Home Credit India is an unsecured lending company and is one of the leading players in the consumer finance and personal lending segment. It entered the Indian market in 2012 and has since served over 1.6 crore customers online and offline.
“We are confident that this acquisition will lend a hand the company enhance scale and profitability and build significant value for all stakeholders,” said Premji Invest Managing Partner and Chief Investment Officer TK Kurien.
