TVS Holdings Ltd. (TVSH), Premji Invest and other associates will acquire 100% equity stake in Home Credit India Finance Pvt. Ltd. for a total consideration of ₹680 crore to expand its presence in the consumer finance space.
While TVSH agreed to buy 80.74% stake from Netherlands-based Home Credit India B.V. and Czech Republic-based Home Credit International A.S. for a cash consideration of ₹554 crore, the remaining 19.26% stake will be purchased by Premji Invest and other associates.
“Financial services represent a huge opportunity for penetration and growth in India,” TVSH MD Sudarshan Venu said during a press meet.
“Together with TVS Credit, the group is doubling down on our investment and really looking forward to capitalising on the opportunity that this presents to establish a ₹50,000 crore book in the next three years,” he said.
Asserting that this acquisition aligns with the strategy of TVSH Group to play a leading role in deepening the financial penetration in India, he said collectively it would have a book of ₹32,000 crore, serving more than 3 crore financial services customers across 90,000 touch points in India.
“With over 50,000 points-of-sale, 3,800 employees spread over 625 cities across India, Home Credit India will focus on new-to-credit (NTC) customers, enabling them with consumer durable loans for low-cost smartphones, along with personal loans,” he said.
Home Credit will operate as a subsidiary of TVS Holdings, maintaining its brand identity and focus on its unique customer segment. As of March 2023, it had Assets under Management of ₹5,535 crore, posted a turnover of ₹1,720 crore, and a net profit of ₹80 crore.
Home Credit India is engaged in the business of providing unsecured loans and is one of the leading players in the consumer financing market and the personal loans segment. It entered the Indian market in 2012 and since then has served over 1.6 crore customers through online and offline.
“We are confident that this acquisition will help the company accelerate scale and profitability and build significant value for all stakeholders,” said Premji Invest Managing Partner and Chief Investment Officer, T.K. Kurien.
