TVS Holdings to acquire 80.74% in Home Credit India for Rs 554 cr

2 companies will need approval from the Competition Commission and Supreme Court for deal

TVS Holdings’ board has approved acquiring a 80.74 per cent equity stake in Home Credit India Finance for Rs 554 crore, said the automobile components company on Friday.

The remaining 19.26 per cent stake will be purchased by Premji Invest and other associates. After signing a sale agreement, TVS Holdings will seek permission from the Competition Commission of India and Home Credit from the Reserve Bank for the proposed transaction. Home Credit will be a subsidiary of TVS Holdings, maintaining its brand identity to focus on “its unique customer segment”, said a statement.

Home Credit India is a part of the Home Credit Group, an international consumer finance provider which was founded in 1997. Home Credit Group entered the Indian market in 2012 and has more than 16 million customers in the country.

Home Credit India is a leading player in the consumer financing market and had assets under management (AUM) of Rs 5,535 crore as of March 31, 2024. It has 3,800 employees and more than 50,000 points-of-sale (PoS) in 625 Indian cities across India. It focuses on new-to-credit (NTC) customers who need personal loans.

“India will continue to be the fastest growing large economy for many years and in the next five years is expected to become the world’s third largest economy. This unprecedented growth is being fueled by the new, confident, and aspirational India, on the back of a world leading digital infrastructure. Financial services represent a huge opportunity as this growth unfolds," said Sudarshan Venu, managing director of TVS Holdings.

"Home Credit (India) is a significant player in consumer financing with a lot of potential. Together with TVS Credit, the (TVS Holdings) Group will now have a lending book of Rs 31,000 crore, taking us closer to our book-size goal of Rs 50,000 crore in the next three years. Collectively, we will now be serving 30 million financial services customers across more than 90,000 touchpoints pan India,” he said.

Radek Pluhar, chief executive officer of Home Credit Group, “Home Credit India is a longstanding member of the Home Credit family. Since launching in the market over a decade ago, we have served millions of Indian customers and empowered local consumers with our innovative and responsible financial products. In addition, we have engaged millions of Indians nationwide to help improve their financial literacy.”

"As an existing shareholder in TVS Credit, we are delighted to partner with TVS Holdings in the Home Credit India acquisition. We are confident that this acquisition will help the company accelerate scale and profitability and build significant value for all stakeholders,” said TK Kurien, managing partner and chief investment officer, Premji Invest. 

JM Financial was the financial advisor and Khaitan & Co was the legal advisor to Home Credit Group in India for the deal.