TVS Credit raises Rs480 crore from Premji Invest
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
PremiumTVS Credit Services Limited, the captive financing arm of TVS Motor Company, on Friday said it has raised Rs. 480 crores by Premji Invest, a prominent investment firm. Through a combination of primary and secondary investments, Premji Invest will acquire a 9.7% equity stake in TVS Credit for Rs. 737 crores, the company said.
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. By doing so, the company aims to provide convenient financing options and fulfill the aspirations of a growing India. Mint reported on December 14, 2022 that TVS Credit was looking to raise $150 million in funding to fuel its growth plans.
TVS Credit has over Rs. 20,000 crores in assets under management (AUM) at present. "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", Sudarshan Venu, Chairman, TVS Credit said.
TVS Credit’s other shareholders include housing finance company HDFC Ltd, which has about 6.1% stake, and Phi Capital which holds around 4% stake in the company, according to VCCEdge. Employees also hold some stake in the company. TVS Credit was started in 2009 when it secured a license from the Reserve Bank of India.
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 omni-channel approach to widen its customer base and to significantly reduce friction involved in traditional financing. We are confident that the company, given its parentage, will achieve great success and continue to build significant value for all stakeholders," said TK Kurien, CEO and Managing Partner, Premji Invest.
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