In a strategic move aimed at redefining its presence and expanding its market reach, Adani Capital and Adani Housing Finance have been rebranded as Tyger Capital and Tyger Home Finance, respectively. This rebranding follows the acquisition of a 90% stake in these entities by Bain Capital, a global private equity firm, for approximately Rs 1,440 crore (USD 175 million). The total valuation of the Adani financial services business stands at Rs 1,600 crore.
Strategic Acquisition by Bain Capital
The acquisition marks Bain Capital’s significant entry into India’s non-banking financial company (NBFC) sector. Bain Capital’s investment includes an additional Rs 983 crore as primary capital to facilitate growth and a liquidity line of Rs 409 crore in the form of Non-Convertible Debentures (NCDs). This financial infusion is expected to propel Tyger Capital and Tyger Home Finance into a new phase of expansion, focusing on underserved segments such as micro, small, and medium enterprises (MSMEs), agriculture, and affordable housing.
Vision and Leadership Continuity
Gaurav Gupta, the Managing Director and CEO of the newly rebranded entities, will continue to lead the company. Gupta’s leadership has been pivotal in building a robust lending business that supports entrepreneurialism and addresses the substantial unmet retail MSME credit demand in India, estimated to exceed $300 billion.
Focus on Underserved Markets
Adani Capital, founded in 2017, has rapidly grown its assets under management (AUM) to nearly USD 500 million. The company has established a network of over 170 branches across eight states and employs more than 2,500 professionals. Its mission has been to democratize access to affordable lending solutions, particularly targeting MSMEs and first-time homeowners in semi-urban and rural India.
Rebranding Rationale
The rebranding to Tyger Capital and Tyger Home Finance signifies a new chapter, aligning with the fresh strategic direction under Bain Capital’s ownership. The new names are intended to resonate more strongly with a broader market audience and reflect the dynamic and agile approach the company aims to adopt in its growth strategy.
Broader Implications for Adani Group
For the Adani Group, this divestment aligns with its strategy to refocus on core infrastructure projects and reduce debt. The group is currently engaged in significant projects, including the Navi Mumbai airport and the Ganga Expressway, and is planning to raise substantial capital through qualified institutional placements (QIPs).
Future Prospects
With Bain Capital’s substantial backing, Tyger Capital and Tyger Home Finance are well-positioned to scale their operations significantly. The focus will remain on providing accessible financial solutions to the underbanked segments of the Indian population, leveraging technology to enhance customer literacy and financial inclusion.
In conclusion, the rebranding of Adani Capital and Adani Housing Finance as Tyger Capital and Tyger Home Finance, coupled with Bain Capital’s investment, marks a transformative phase aimed at expanding financial access and driving growth in underserved markets. This strategic move underscores the confidence of global investors in the potential of India’s NBFC sector and the critical role of financial inclusion in economic development.
Meet Suhas Harshe, a financial advisor committed to assisting people and businesses in confidently understanding and managing the complexities of the financial world. Suhas has shared his knowledge on various topics like business, investment strategies, optimizing taxes, and promoting financial well-being through articles in InvestmentDose.com
