Acquisition · Financial Services
Home Credit India buys Varthana for 967 crore rupees
By Startup Enthusiast ·
- Date
- Company
- Varthana Finance
- What it does
- Education sector credit provider
- Kind
- Acquisition
- Amount
- ₹967 crore
- Founded
- 2013
- Sector
- Financial Services
What they do
Varthana Finance provides collateral-free loans to schools and students in India
What happened
TVS Holdings subsidiary Home Credit India acquires the company for ₹967 crore cash
Why it matters
The deal expands TVS group's secured lending presence subject to regulatory approvals
The details
- Home Credit India signs a share purchase agreement to acquire 100% of Varthana Finance.
- The transaction value is set at ₹967 crore paid entirely in cash.
- TVS Holdings will become the parent company through its subsidiary Home Credit India.
- Varthana Finance becomes a wholly owned subsidiary of Home Credit India.
- The acquisition requires approval from the Reserve Bank of India and other regulators.
- Closing is expected within nine months after the agreement is executed.
- This is not a related-party transaction as promoters have no interest in Varthana.
- Steve Hardgrave serves as Whole-time Director and Executive Vice Chairman of Varthana.
The bigger picture
- TVS Venu Group aims to expand its financial services footprint significantly.
- The move adds Varthana's specialized education finance business to the TVS portfolio.
- Acquisition broadens participation in secured and longer-tenure lending segments.
- Home Credit India already has a strong presence in consumer finance.
About the business
- Varthana operates as an NBFC providing credit to educational institutions.
- It serves schools colleges tutorial centres and vocational training institutes.
- Products include low-cost collateral-free loans with customised EMI options.
- Student loans go up to ₹5 Lakh for various degree and certification courses.
- FY26 turnover reached ₹398.31 crore with a profit after tax of ₹18.65 crore.
- Net worth stood at ₹574.23 crore for the fiscal year ending 2026.
- The company claims to have served more than 13000 schools since inception.
- Formerly known as Thirumeni Finance Private Limited it rebranded to Varthana.
What happens next
- Transaction closes within nine months pending regulatory approvals.
The deal
- Type
- acquisition
Investors
- responsAbility Investments (investor) — Provided historical funding totaling over $175 million.
- Franklin Templeton (investor) — Provided historical funding totaling over $175 million.
- Blue Earth Capital (investor) — Provided historical funding totaling over $175 million.
- Elevar Equity (investor) — Provided historical funding totaling over $175 million.
- Omidyar Network (investor) — Provided historical funding totaling over $175 million.
- Chrys Capital (investor) — Provided historical funding totaling over $175 million.
- OfBusiness (co-lead) — Co-led ₹75 crore debt funding about a year prior.
- Oxyzo (co-lead) — Co-led ₹75 crore debt funding about a year prior.
Founders
- Brajesh Mishra, Founder
- Steve Hardgrave, Executive Vice Chairman
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