Home Credit India Finance to acquire Varthana Finance for Rs 967 crore

Home Credit India Finance, a subsidiary of TVS Holdings Ltd, has agreed to acquire a 100 percent stake in Varthana Finance Private through an all-cash transaction valued at Rs 967 crore. The agreement, which was signed on July 15 in Chennai, marks a significant expansion of the TVS Venu group’s financial services portfolio.

Once the transaction is completed, Varthana Finance will transition into a wholly owned subsidiary of Home Credit India Finance. This transition will also make Varthana Finance a step-down wholly owned subsidiary of TVS Holdings. TVS Holdings itself is part of the TVS Venu faction of the larger TVS Group. The finalization of this transaction is subject to approvals from various regulatory authorities.

In terms of financial performance, Varthana Finance posted a revenue of Rs 398 crore and a profit after tax of Rs 19 crore in FY26. The company's net worth stood at Rs 547 crore, making it a substantial addition to the group's portfolio.

The acquisition will add Varthana’s education finance business to the TVS Venu group’s financial services portfolio. By incorporating this business, the TVS Venu group aims to expand its presence in secured, longer-tenure lending and diversify its existing loan book.

This acquisition is part of an ongoing expansion strategy by the TVS Venu group. The transaction comes just two months after the group acquired about a 10 percent stake in Jana Small Finance Bank for Rs 193 crore. Furthermore, Home Credit India itself was acquired by the TVS Venu group in a Rs 554-crore transaction that was completed last year. The current Rs 967-crore deal represents another major step in the group's financial sector acquisitions.