Global private equity firm (PE) KKR has bought out Ranu Vohra, the co-founder of Avendus Capital, clearing up the way for a deal to sell the financial services firm. The deal to buy out the 6% stake held by Vohra values the company at ₹11,500 crore, people with knowledge of the development said.
“The deal between Vohra and KKR got signed on 9 December, and will now help to take the deal to sell the company forward,” one of the people with knowledge of the development said.
The valuation is nearly double the ₹6,000-crore offer that Mizuho had made earlier this year when the Japan’s leading financial services group wanted to acquire around 80% of the homegrown financial services firm.
“Given Vohra is a promoter he has been given a special valuation. This does not necessarily mean that other stakeholders will get the same value,” said the second person cited above. As per the previous share purchase agreement, the founders had a veto on the deal. With this stake sale, Vohra will relinquish his rights and disassociate with the company, the people confirmed.
The deal comes 10 years after KKR pumped in $115 million to acquire a controlling stake in Avendus in 2015 and doubled up with another $55 million in later rounds, taking its total investment in the company to more than ₹980 crore.
KKR owns 63% stake in Avendus
KKR currently owns a 63% stake in Avendus Capital. The rest is held by Gaja Capital, Alliance Tire Group’s founder Yogesh Mahansaria, other co-founders and some employees.
Founded in 1999 by Gaurav Deepak, Vohra and Kaushal Aggarwal, Avendus group offers investment banking, asset management, non-banking financial companies, alternative investment fund, equity advisory and other financial services businesses.
As per an 18 March ratings release by Crisil, Avendus Capital Pvt. Ltd, on a consolidated basis, reported a net profit of ₹170 crore in the nine months ended fiscal 2025 ( ₹118 crore in fiscal 2024 and ₹138 crore in fiscal 2023). Return on average net worth for fiscal 2021 and the nine months of fiscal 2025 was at an average of about 10%, while the average cost to income ratio for the same period was around 77%.
Emailed queries to Avendus Capital, KKR, Vohra and Gaja Capital did not elicit any response.
The interest by Mizuho in buying into Avendus plays into the larger trend by global strategic players looking to enter India with large buyout deals. Recently, Emirates NBD bought a controlling stake in listed lender RBL Bank in a $3 billion deal. Separately, MUFG is eyeing a controlling stake in Yes Bank and in Shriram Finance, Mint reported.
Earlier this year, global private equity investor Blackstone picked up 9.9% stake in Federal Bank for $705 million. International Holding Company (IHC), through its affiliate Avenir Investment RSC Ltd, acquired 43.46% stake in Sammaan Capital for $1 billion ( ₹8,850 crore).