Ambit Finvest, a non-banking financial company (NBFC) within the Ambit Group, has raised ₹415 crore from Japanese financial services firm Daiwa Securities Group Inc for a minority stake. This move aims to capitalize on the growth opportunities within India’s NBFC sector while boosting financial inclusion across the country.
The agreement, signed on Tuesday, is subject to customary conditions and the receipt of necessary regulatory approvals. The size of the stake acquired was not disclosed.
This investment reinforces the existing collaboration between Ambit and Daiwa, building on their renewed business partnership announced in May of last year. Their joint efforts are primarily focused on catering to global clientele in institutional equities and equity capital markets sectors.
Ambit Finvest has been investing in enhancing its branch infrastructure and technological capabilities to extend credit services to small and medium-sized enterprises (SMEs).
Ashok Wadhwa, the Group CEO, Ambit, expressed enthusiasm about deepening the partnership with Daiwa, highlighting the crucial role of SMEs in India’s economy and the pressing need for improved access to formal credit facilities. “(Ambit Finvest) It is now at the cusp of a breakout in its business trajectory and we are delighted to invite Daiwa as a long-term strategic investor to participate in this journey.”
Seiji Nakata, president and CEO, Daiwa, underscored the strategic importance of India for the company, anticipating substantial economic growth in the years ahead.
“We are happy to have Daiwa share our vision of serving the underserved MSMEs in India, and providing reliable financing alternatives,” said Sanjay Agarwal, CEO, Ambit Finvest.
Ambit Finvest has also raised an additional ₹275 crore in equity from existing shareholders and investors, including Ambit itself, marking a significant step towards achieving its strategic objectives.