Ambit Finvest Raises INR 415 Cr in Partnership with Daiwa Through a Minority Stake With this move, the mumbai-based company Ambit and Daiwa aim to seize the growth opportunities in the expanding Indian NBFC sector to contribute to the acceleration of financial inclusion.
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Financial advice and capital provider Ambit has announced the raising of INR 415 crore from Japanese financial services firm Daiwa Securities Group Inc for a minority stake. The amount of the acquired stake was not made public.
With this move, Ambit and Daiwa aim to seize the growth opportunities in the expanding Indian NBFC sector to contribute to the acceleration of financial inclusion.
Ashok Wadhwa, Group CEO, Ambit said, "Despite being a major driver of the Indian economy, MSMEs need greater access to formal credit and Ambit Finvest has been working towards meeting their credit requirements. 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."
Ambit Finvest claims that it has been investing heavily in branch infrastructure and technology over the past couple of years, providing secured and unsecured business loans, as well as used vehicle loans, to small and medium-sized enterprises (MSMEs) in India.
Ambit Finvest is a Non-Banking Financial Company (NBFC) of the Ambit Group. It claims that it has provided assistance to more than 68,000 MSME owners in various industries since 2018 and has disbursed loans totaling more than INR 6,000 crore since its founding. With more than 2,000 staff members and 165 branches throughout 11 states, it currently has an AUM of more than INR 3,800 crore.
Sanjay Agarwal, CEO, Ambit Finvest, added, "A longstanding partnership will allow Ambit Finvest to build a long-term sustainable institution of scale, which is profitable, while maintaining strong asset quality and risk management parameters. We are happy to have Daiwa share our vision of serving the underserved MSMEs in India, and providing reliable financing alternatives."
Additionally, in May 2023, Ambit announced that it had partnered with Daiwa, wherein both firms would collaborate to service global clients for Institutional Equities, as also for the Equity Capital Markets (IPO, public fund-raising and other related) business, leveraging the Indo-Japan corridor.
Seiji Nakata, President and CEO of Daiwa added, "We have been conducting business in India through our long term partnership with Ambit Group. With this new opportunity to invest in Ambit Finvest, which is developing its high-growth non-banking finance business, we believe there is potential for an expansion of our business operations in India."
