Majority stake in Infinity Fincorp to be acquired by Partners Group for Rs 1,950 Cr
Partners Group has signed a share purchase and subscription agreement with Infinity Fincorp Solution, a non-bank lender in India, whereby Partners Group will purchase a sizable majority stake in the business.
Partners Group spearheaded the Rs 19.5 billion (roughly $230 million) investment in Infinity, with current shareholder Jungle Ventures also contributing. A primary issuance of Rs 6 billion, or roughly $70 million, and a secondary purchase from Indium IV (Mauritius) Holdings Limited, a fund run by Global Opportunity Advisors (Mauritius) Limited and advised by True North Managers LLP and other shareholders, are both included in the investment.
Infinity says the money will be used to speed up the opening of new branches and make technological investments to improve the onboarding and experience of customers.
Infinity, a Mumbai-based company, helps small businesses and entrepreneurs realize their full potential by providing services to unbanked and underbanked Medium Small & Micro Enterprises throughout India. With more than 120 branches in eight states, it provides small business owners and entrepreneurs with specialized secured loans. Over Rs 12 billion, or about $140 million, in assets are managed by Infinity.
According to Infinity, it has about 50,000 clients, most of whom are based in smaller towns and cities around the nation and are employed in the manufacturing, trading, and agricultural industries.
The MSME sector credit gap, estimated at Rs 33 trillion, is currently expanding at a rate of about 16% per year, according to market research.
With the help of thematic tailwinds such as robust economic growth, formalized lending procedures, increasing government support, and rapid digitization, which shortens the time between customer onboarding and loan disbursement, Infinity operates in India’s MSME sector.
