Partners Group to acquire majority stake in Infinity Fincorp for Rs 1,950 crore
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Swiss private equity firm Partners Group will acquire a majority stake in Infinity Fincorp Solutions, a Mumbai-based non-bank lender focused on MSMEs, through an investment of Rs 1,950 crore (around $230 million), the companies said on Wednesday.The deal, which includes participation from existing shareholder Jungle Ventures, comprises a primary infusion of Rs 600 crore ($70 million) and a secondary purchase of shares from Indium IV (Mauritius) Holdings and other shareholders. ET first reported on the potential transaction on June 20.'Infinity Fincorp Solutions, a leading non-bank lender in India, has entered into a share purchase and subscription agreement with Partners Group, whereby Partners Group will acquire a significant majority stake in the company,' said the joint statement issued by the two companies on Thursday.Infinity Fincorp plans to use the fresh capital to expand its branch network, invest in technology, and improve customer onboarding and experience. The investment is subject to regulatory approvals.'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,' said Shrikant Ravalkar, founder, managing director and CEO of Infinity Fincorp. 'We welcome Partners Group and intend on leveraging their operational expertise to further broad base our mission of serving the Indian MSME sector.'Founded in 2017, Infinity Fincorp provides secured loans to micro, small, and medium enterprises , primarily in tier II and tier III cities. The company has more than Rs 1,200 crore ($140 million) in assets under management, around 50,000 customers, and operates over 120 branches across eight states. Its customer base spans sectors such as 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,' said Vageesh Gupta, managing director, private equity, Partners Group.According to Tracxn, Infinity Fincorp posted a net profit of Rs 25.72 crore in FY24, on revenue of Rs 143.7 crore.The latest funding comes after Infinity Fincorp raised $40 million in an extended Series A round in April that was led by Beams Fintech Fund, with participation from True North, Jungle Ventures, and Archerman Capital. In January, the company had raised $35 million from Jungle Ventures, Archerman Capital, and Magnifico.Partners Group, which manages over $150 billion in assets globally, has previously invested in Indian companies such as Darwinbox, Ecom Express, and Vishal Mega Mart . In April, the firm exited Ecom Express by selling its stake to Delhivery in an all-cash deal worth Rs 1,407 crore, alongside co-investors Warburg Pincus and British International Investment. The firm has deployed $2.5 billion in India to date.
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