Global private markets firm Partners Group has agreed to acquire a majority stake in Infinity Fincorp Solutions for $230 million, buying out True North’s controlling stake in the non-bank lender, in one of the largest recent control deals in the sector.
The investment includes a primary infusion of $70 million to support future growth, with the remainder being a secondary transaction from existing investor Indium IV (Mauritius) Holdings, advised by True North Managers LLP.
Avendus Capital acted as the exclusive financial advisor to Infinity Fincorp and its shareholders on this transaction.
According to a report by The Economic Times last month, Partners outbid rival PE firms Advent International and Creador to clinch the deal.
Headquartered in Mumbai, Infinity, which operates in eight Indian states, lends to micro-entrepreneurs like tea shop owners, vegetable vendors, small machine enterprises, restaurants, provision stores, and textile shops. Its client base includes electricians, plumbers, carpenters, milkmen, laundry service providers, and hairdressers who are financially underserved.
Founded by Shrikant Ravalkar in 2016, the company currently manages $140 million in assets and employs over 1,500 people.
In January, Infinity Fincorp raised $35 million in a funding round led by existing investor Jungle Ventures, a Singapore-based independent VC firm.
Other backers of the firm include True North, Beams Fintech Fund, M Pallonji and Archerman Capital.
A surge in MSME lending plays
The MSME financing segment in India has attracted increasing investor interest due to its strong structural tailwinds, including rapid formalisation, policy support, and rising digital penetration.
Earlier this week, Trident Growth Partners (TGP), an India-focused growth-stage private equity firm, invested Rs 120 crore in Mumbai-based NBFC Credit Wise Capital (CWC), leading a Rs 200-crore ($24 million) funding round. Last month, Dutch development bank FMO proposed issuing $40 million in debt to Mumbai-based NBFC Protium Finance Ltd (PFL).
In the same month, India’s UGRO Capital, a data-tech-focused NBFC, signed a deal to acquire MSME lender Profectus Capital in an all-cash deal worth Rs 1,400 crore.
Partners Group said Infinity’s growth aligns with these themes and builds on its experience backing Aavas Financiers, an affordable housing finance firm it acquired in 2016 and exited earlier this year.
Partners Group first invested in Aavas in 2016, aiming to establish the first private equity-controlled housing finance company in India. Aavas was listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in 2018. Since the IPO, Partners Group has gradually reduced its shareholding, culminating in this final divestment.
“The MSME segment contributes a significant share of national GDP, and we expect credit demand to continue rising,” said Vageesh Gupta, Managing Director, Private Equity, Partners Group. “NBFCs like Infinity are well-positioned to serve this market through more flexible and specialised lending operations.”
Infinity plans to use the primary capital to expand its branch network, invest in technology, and strengthen its customer acquisition and service capabilities.
The deal also demonstrates Partners Group’s growing footprint in India. The Swiss-headquartered firm has now invested $2.5 billion in the country, including investments such as Vishal Mega Mart, Ecom Express, and Aavas Financiers.
Earlier this year, the firm co-led a $140 million funding round in Darwinbox with KKR.
Partners Group’s India bets
