Partners Group to acquire majority stake in Infinity Fincorp for Rs 1,950 Cr

Infinity Fincorp Solution, a 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. 

The investment of Rs 19.5 billion (about $230 million) in Infinity was led by Partners Group with participation from existing shareholder Jungle Ventures. The investment includes a primary issuance of Rs 6 billion (about $70 million) along with a secondary purchase from Indium IV (Mauritius) Holdings Limited, a Fund managed by Global Opportunity Advisors (Mauritius) Limited which is advised by True North Managers LLPand other shareholders.

According to Infinity, the company will utilize the funds to accelerate its branch roll out and invest in technology to enhance customer onboarding and experience. 

The Mumbai-based Infinity serves unbanked and under-banked Medium Small & Micro Enterprise across India, enabling small businesses and entrepreneurs to unlock their growth potential. It offers customized secured loans to entrepreneurs and small business owners from over 120 branches across eight states. Infinity has more than Rs 12 billion (around $140 million) in assets under management.

Infinity claims to have around 50,000 customers, many of which work in the agriculture, trading, and manufacturing sectors and are typically based in smaller towns and cities across the country.

As per market research, the MSME sector credit gap has been assessed at Rs 33 trillion and is currently growing at around 16% annually. 

Infinity operates in the MSME segment in India, which is benefitting from thematic tailwinds including strong economic growth, formalization of lending processes, growing government support, and rapid digitalization, which is accelerating the time taken from customer onboarding to loan disbursal.