BENGALURU/CHENNAI: Home Credit India, part of TVS Venu, has agreed to acquire a 100% stake in Varthana Finance Private Limited through an all-cash transaction, subject to receipt of applicable regulatory approvals, including approval from the Reserve Bank of India, and fulfilment of customary closing conditions.

The proposed acquisition marks another step in TVS Venu’s long-term approach to build and scale high-quality financial services businesses that serve India’s evolving credit needs across customer segments. With the addition of Varthana’s specialised education-finance franchise to its growing financial services platform, the Group will expand its presence into a complementary secured and longer-tenure lending segment.

The transaction will strengthen TVS Venu’s position in India’s financial services sector and create opportunities to support Varthana’s next phase of growth.

Sudarshan Venu, chairman, TVS Motor Company, said, "India’s financial services sector continues to offer significant opportunities for long-term growth, driven by rising formalisation, expanding credit access and the increasing need for specialised lending solutions.

As we continue to build and scale our financial services platform, we remain focused on supporting high-quality institutions that address important customer needs across segments.

Varthana has built a differentiated franchise within the education-finance ecosystem, with deep expertise in a specialised lending segment and a strong reputation among the institutions it serves. The proposed acquisition will broaden our participation in secured and longer-tenure lending while complementing the Group’s existing strengths."

Steve Hardgrave, whole-time director and executive vice chairman, Varthana, said, “We look forward to joining forces with TVS as we continue to support private schools throughout the country.”