Partners Group to Acquire Majority Stake in Infinity Fincorp
Swiss private equity firm Partners Group is set to obtain a controlling interest in Infinity Fincorp Solutions, a non-bank lender in Mumbai that specializes in MSMEs, through an investment of Rs.. 1,950 crore (approximately $230 million), according to reports.
The transaction, which involves participation from existing investor Jungle Ventures, consists of a primary investment of Rs 600 crore ($70 million) and a secondary acquisition of shares from Indium IV (Mauritius) Holdings and other investors.
Infinity Fincorp Solutions, a prominent non-bank lender in India, has finalized a share purchase and subscription agreement with Partners Group, under which the latter will secure a significant majority ownership in the firm.
Infinity Fincorp intends to utilize the newly acquired capital to enhance its branch network, invest in technology, and improve customer onboarding and overall experience. This investment is pending regulatory approvals.
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Shrikant Ravalkar, founder, managing director and CEO of Infinity Fincorp says, “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 a long-term impact. We welcome Partners Group and intend on leveraging their operational expertise to further broaden the base of our mission of serving the Indian MSME sector.”
Established in 2017, Infinity Fincorp offers secured financing to micro, small, and medium businesses, mainly located in tier II and tier III cities.
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The firm manages assets exceeding Rs 1,200 crore ($140 million), serves approximately 50,000 clients, and has more than 120 branches across eight states. Its clientele includes various sectors, including agriculture, manufacturing, and trading.
"The MSME segment contributes a significant share of national GDP, and we expect demand for credit will continue to rise. We believe non-bank lenders such as Infinity have advantages in catering to these enterprises due to their highly specialised operations, which are better suited to providing customised solutions,” says Vageesh Gupta, managing director, private equity, Partners Group.