TVS Credit Services Secures Rs. 480 Crores Funding from Premji Invest for Growth and Expansion
TVS Credit Services Receives Rs. 480 Crores Funding and 9.7% Equity Stake for Customer Base Expansion
11 June 2023
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Kunal Tyagi
TVS Credit Services Limited secures Rs. 480 crore funding from Premji Invest, acquiring a 9.7% equity stake in the company.
The capital will be utilized to expand the customer base, strengthen the channel partner network, and advance digitization efforts.
TVS Credit aims to provide convenient financing options, promote financial inclusion, and achieve higher growth momentum.
TVS Credit Services Limited, the captive financing arm of TVS Motor Company, has recently secured a substantial infusion of funds amounting to Rs. 480 crores from Premji Invest, a prominent investment firm. This strategic investment encompasses a combination of primary and secondary investments, with Premji Invest acquiring a noteworthy 9.7% equity stake in TVS Credit for Rs. 737 crores. The capital infusion will empower TVS Credit to augment its customer base, fortify its channel partner network, and expedite its digitization endeavors.
Endowed with freshly acquired capital, TVS Credit aspires to extend its footprint into unexplored markets, proffering convenient financing alternatives while catering to the burgeoning ambitions of an expanding India. The organization envisages leveraging digitization to forge connections with new clientele and galvanize an upward trajectory of growth. By embracing cutting-edge technology and cultivating digital partnerships through an all-encompassing approach, TVS Credit intends to mitigate the hindrances commonly associated with traditional financing mechanisms and expand the horizons of its customer base.
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Expressing his profound admiration for Premji Invest, Sudarshan Venu, Chairman of TVS Credit, warmly welcomed them as valuable collaborators. He duly acknowledged Premji Invest's profound comprehension of the Indian consumer landscape and the financial services sector, foreseeing the strategic value they would bring to expedite TVS Credit's ambitious growth plans. Both entities share a steadfast commitment to accomplishing remarkable success and generating substantial value for all stakeholders involved.
Besides Premji Invest, TVS Credit boasts other noteworthy shareholders, including HDFC Ltd and Phi Capital, alongside employee stakeholders. TVS Credit has showcased remarkable performance, surpassing the remarkable milestone of managing assets worth Rs. 20,000 crores. With a robust balance sheet and an unwavering growth trajectory, the company has solidified its position as a preeminent non-banking finance company (NBFC) within India.
TVS Credit has consistently empowered individuals from diverse socio-economic backgrounds by providing all-inclusive and affordable credit options. Its expansive network of over 40,000 touchpoints has served a staggering customer base exceeding 1 crore. Nurturing a digital-centric approach, forging strategic alliances, and establishing a strong foundation, TVS Credit aspires to foster financial inclusivity, drive innovation, and deliver unparalleled value to its stakeholders. The organization anticipates that its managed assets will surpass the remarkable milestone of Rs. 50,000 crores in the forthcoming years.
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