TVS Credit Secures Rs 480 Crore Funding from Premji Invest
TVS Credit Services Limited, the captive financing arm of TVS Motor Company, announced on Friday that it has secured Rs 480 crore in funding from Premji Invest, a renowned investment firm. This investment comprises both primary and secondary investments, enabling Premji Invest to acquire a 9.7% equity stake in TVS Credit for Rs 737 crore.
The primary capital raised will play a crucial role in TVS Credit’s expansion plans, including entering new markets, strengthening its channel partner network, and accelerating its digitization initiatives. By leveraging these funds, the company aims to offer convenient financing solutions that cater to the aspirations of India’s growing population. According to Mint’s report on December 14, 2022, TVS Credit had expressed its intention to raise $150 million in funding to fuel its ambitious growth objectives.
At present, TVS Credit manages assets worth over Rs 20,000 crore. Sudarshan Venu, Chairman of TVS Credit, expressed his enthusiasm about the partnership, stating, “As we embark on the next phase of our journey, we will focus on leveraging digitization to reach new customers and achieve accelerated growth. I have immense respect for Premji Invest and am thrilled to have them as our partner. With their profound understanding of the Indian consumer landscape and the financial services industry, Premji Invest will bring strategic value and expedite our growth plans.”
TVS Credit’s current shareholders include HDFC Ltd, a housing finance company with a 6.1% stake, Phi Capital with approximately 4% stake, and employees who also hold a portion of the company’s equity, as reported by VCCEdge. The Reserve Bank of India granted TVS Credit a license to operate in 2009, marking the beginning of its successful journey.
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TK Kurien, CEO and Managing Partner of Premji Invest, expressed excitement about the partnership and TVS Credit’s mission to drive financial inclusion. He stated, “We are thrilled to collaborate with TVS Credit in their endeavor to provide easier access to a range of affordable and innovative financial products, thereby promoting financial inclusion. Through technology and digital partnerships, TVS Credit aims to broaden its customer base and significantly reduce the complexities associated with traditional financing. Given its strong parentage, we are confident that the company will achieve remarkable success and create substantial value for all stakeholders.”
By securing substantial funding from Premji Invest, TVS Credit is poised to take significant strides towards its growth objectives, embracing technology and expanding its customer reach. This partnership holds promise for fostering financial inclusion and reshaping the financial services landscape in India.
About TVS Credit:
TVS Credit Services Limited is a global provider of comprehensive auto financing solutions. With a specialization in financing for bikes, cars, and heavy vehicles, TVS Credit Services caters to customers around the world. Their extensive range of services ensures that individuals and businesses can easily access the financing they need for their automotive requirements. Whether it’s purchasing a new bike, car, or heavy vehicle, TVS Credit Services is committed to facilitating smooth and convenient financing experiences for their diverse customer base.
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