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NewsVoir
Chennai (Tamil Nadu) [India], June 10: TVS Credit Services Limited ("TVS Credit" or the "Company"), one of India's leading NBFCs, today announced that it has successfully raised equity capital of Rs 480 crores from Premji Invest. As part of the transaction, Premji Invest will acquire a 9.7 per cent equity stake in TVS Credit for Rs 737 crores, 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 crores, 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. 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." "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 crores representing a growth of 48 per cent from the previous year. The Company expects its AUM to grow over Rs 50,000 crores 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. Nomura Financial Advisory and JM Financial acted as financial advisors and Khaitan & Co. acted as legal advisor on the transaction. TVS Credit Services Limited is a leading Non-Banking Financial Company registered with the RBI. With over 40,000 touchpoints across India, the Company aims to empower Indians to dream bigger and fulfil their aspirations. Being the number one financier for TVS Motor Company Limited and one of the leading tractor financiers, TVS Credit has a fast-growing footprint in Used Car Loans, Consumer Durable Loans, Used Commercial Vehicle Loans, and Unsecured Loans segment. Powered by robust new-age technologies and data analytics, the Company has served over 1 crore happy customers with the help of its 19,000+ employees. Premji Invest (PI) primarily supports the philanthropic initiatives of the Azim Premji Foundation, a not-for-profit organisation that seeks to help improve the lives of the underserved and underprivileged in society. PI invests in India and Overseas. The charter of PI is to back emerging and disruptive technologies and nurture the spirit of entrepreneurship in the country. It believes strongly in the transformative role of technology in improving productivity which in turn impacts social upliftment. The core areas that PI invests in are financial services, technology, consumer, and healthcare. For any further queries, please write to our corporate communications team at corporatecomms@tvscredit.com (Disclaimer: The above press release has been provided by NewsVoir. ANI will not be responsible in any way for the content of the same)
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