The Business Bytes
TBB BUREAU
CHENNAI, JUNE 10, 2023
TVS Credit Services Limited, one of India’s leading NBFCs, today announced that it has successfully raised equity capital of Rs. 480 crore from Premji Invest.
As part of the transaction, Premji Invest will acquire a 9.7% equity stake in TVS Credit for Rs. 737 crore, via a combination of primary and secondary investment.
The primary capital will be utilised to further strengthen TVS Credit’s efforts in expanding its customer base in new markets, increasing the channel partner network, and advancing its digitisation journey. With this infusion of capital, the Company aims to accelerate its mission of fulfilling the aspirations of a growing India by providing convenient financing options.
Commenting on this funding, Sudarshan Venu, Chairman, TVS Credit, said, “TVS Credit has demonstrated exceptional performance, achieving robust and profitable growth. Within a short span of time, our Company’s Assets Under Management (AUM) have surpassed Rs. 20,000 crore, supported by a strong balance sheet. 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.”
“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.
By providing inclusive and affordable credit options, TVS Credit empowers individuals from diverse socio-economic backgrounds, contributing to their financial well-being.
The Company has achieved consistent growth with good credit quality and built a strong customer base of over 1 crore who are served through a vast network of 40,000+ touchpoints across the country. In FY23, the Company reported an AUM of Rs. 20,602 crore representing a growth of 48% from the previous year. The Company expects its AUM to grow over Rs. 50,000 crore in the next few years. With its strong foundation, digital orientation, and strategic partnerships, the Company remains focused on promoting financial inclusivity, driving innovation, and delivering value to its stakeholders.
