TVS Holdings announced the successful completion of its acquisition of an 80.74% equity stake in Home Credit India Finance for ₹554 crores. The remaining 19.26% of the equity stake has been purchased by Premji Invest and other associates of TVS Holdings.
Home Credit India focuses on New-to-Credit (NTC) customers, enabling them with Consumer durable loans for low-cost smartphones, along with personal loans.
Home Credit India has served over 1.6 crore customers, both online as well as offline. Home Credit India is one of the leading players in the consumer financing market with Assets under Management (AUM) of ~₹5,535 crore as of March 31, 2024. It has an employee base of 3,800 and a strong network of over 50,000 points-of-sale (PoS) spread over 625 cities across India.
The acquisition of Home Credit was funded through a combination of the proceeds from the recent sale of TVS Holdings’ real estate assets and borrowings from capital markets, ensuring prudent financial management and capital utilization by TVS Holdings. By leveraging the sale proceeds of the real estate assets, TVS Holdings has maintained its strong financial position while expanding into a high-growth industry.
Sudarshan Venu, Managing Director, TVS Holdings, said, “The acquisition of Home Credit India marks an important milestone for TVS Holdings. We are thrilled to welcome Home Credit India’s talented team and huge customer base of 1.6 crore customers to the TVS family. This transaction underscores our commitment to delivering innovative and inclusive financial solutions. Together with TVS Credit, the Group will now have a lending book of ~₹33,000 Crore, taking us closer to our book-size goal of ₹50,000 Crore in the next three years.”
“We are confident that this acquisition will help the group strengthen its position in the financial services sector, accelerate scale and profitability and build significant value for all stakeholders,” said TK Kurien, Managing Partner and Chief Investment Officer, Premji Invest.
