TVS Holdings Limited has successfully acquired an 80.74% equity stake in Home Credit India Finance Private Limited (HCIFPL), finalizing the transaction on February 3, 2025.
Key Highlights of the Acquisition:
- Stake Acquired: TVS Holdings now owns 80.74% of HCIFPL, while the remaining 19.26% was acquired by Premji Invest and other associates of TVS Holdings.
- Transaction Value: The acquisition was completed for Rs 554 Crores.
- Subsidiary Status: With this acquisition, HCIFPL becomes a subsidiary of TVS Holdings.
- Strategic Significance: This move strengthens TVS Holdings’ foothold in the financial services sector.
- Home Credit India’s Market Position:
- Assets Under Management (AUM): Rs 5,535 Crores (as of March 31, 2024).
- Customer Base: Over 1.6 crore customers through online and offline channels.
- Workforce & Network: 3,800 employees and over 50,000 points-of-sale (PoS) across 625 cities in India.
- Core Focus: Catering to New-to-Credit (NTC) customers with consumer durable and personal loans.
- Synergies & Growth Potential:
- Expanding financial solutions for a broader customer base.
- Strengthening collections, digital capabilities, and analytics.
- Enhancing cost efficiencies and cross-selling opportunities.
- Funding Mechanism: The acquisition was financed through a mix of proceeds from TVS Holdings’ real estate business sale and capital market borrowings.
- Lending Book Expansion: With this acquisition, the combined lending book of TVS Credit and Home Credit India stands at Rs 33,000 Crore, with a target of Rs 50,000 Crore in three years.
- Premji Invest’s Role: As a co-investor, Premji Invest brings expertise in backing emerging financial technologies. The firm’s returns contribute to the Azim Premji Foundation’s philanthropic initiatives.
This acquisition marks a strategic milestone for TVS Holdings, reinforcing its vision to expand and innovate in India’s financial services sector.