Mumbai, Jul 10 (PTI) Partners Group on Thursday announced that it is acquiring a majority stake in small businesses-focused lender Infinity Fincorp for Rs 1,950 crore.
The investment includes Rs 600 crore of primary infusion to support the lending growth and a secondary purchase from True North-advised Indium IV (Mauritius) and other shareholders, as per a statement.
Jungle Ventures, an existing shareholder, also participated in the transaction, the statement said without sharing exact details.
This is the maiden investment for Partners Group in an Indian non-banking finance company. Infinity has over Rs 1,200 crore assets under management, and 1,500 people working across 120 branches.
It has around 50,000 customers, many of whom work in the agriculture, trading, and manufacturing sectors and are typically based in smaller towns and cities across the country, the statement said, adding that the new capital will expand Infinity's reach in underserved cities.
"We are dedicated to empowering entrepreneurs and business owners across Tier 3 towns in India through flexible, need-based lending solutions that are designed to create long-term impact," Infinity's founder, managing director and chief executive Shrikant Ravalkar said.
Partners Group's managing director for private equity Vageesh Gupta said it expects demand for credit from the MSME segment will continue to rise, and non-bank lenders like Infinity have advantages in catering to these enterprises due to their highly specialised operations that are better suited to providing customised solutions.