TVS Holdings Limited (BSE: 520056, NSE: TVSHLTD) has successfully completed the acquisition of an 80.74% equity stake in Home Credit India Finance Private Limited for Rs 554 crore. The remaining 19.26% stake has been acquired by Premji Invest and other associates of TVS Holdings.
This strategic acquisition strengthens TVS Holdings’ presence in the financial services sector, enabling the company to expand its offerings in consumer financing. Home Credit India, a leading player in consumer finance, has served over 1.6 crore customers through both online and offline channels. The company reported Assets Under Management (AUM) of approximately Rs 5,535 crore as of March 31, 2024.
With an extensive network of over 50,000 points-of-sale (PoS) across 625 cities and an employee base of 3,800, Home Credit India primarily caters to New-to-Credit (NTC) customers, offering consumer durable loans, including financing for low-cost smartphones and personal loans. The acquisition will allow TVS Holdings to leverage synergies in collections, cost efficiencies, digital analytics, and cross-selling opportunities.
The acquisition was funded through a mix of proceeds from the recent sale of TVS Holdings’ real estate assets and borrowings from capital markets. The company had earlier exited the real estate sector, citing its capital-intensive nature and long gestation periods, choosing instead to redeploy capital in its core investment strategies.
Strategic Growth and Future Plans
Commenting on the acquisition, Sudarshan Venu, Managing Director, TVS Holdings, stated, “The acquisition of Home Credit India is a significant milestone for TVS Holdings. We are excited to welcome Home Credit India’s talented team and its vast customer base of 1.6 crore to the TVS family. This move underscores our commitment to providing innovative and inclusive financial solutions. Together with TVS Credit, our lending book now stands at approximately Rs 33,000 crore, bringing us closer to our goal of Rs 50,000 crore in the next three years.”
TK Kurien, Managing Partner and Chief Investment Officer of Premji Invest, added, “We are confident that this acquisition will strengthen the group’s position in the financial services sector, accelerate scale and profitability, and create significant value for all stakeholders.”
About Home Credit India
Home Credit India Finance Private Limited is a subsidiary of international consumer finance provider Home Credit N.V., which operates across Europe and Asia. Entering the Indian market in 2012, the company has consistently expanded its footprint, offering financial solutions designed for transparency and accessibility. With over 16 million customers in India, the company continues to drive credit penetration and financial inclusion.