Investment by Warburg Pincus and existing Investor IFC
Au Financiers attracts additional investment of $ 50 million : Au Financiers (India) Private Limited announced today that the company has attracted an investment of US$ 50 million led by Warburg Pincus, a leading global private equity firm. Existing investor International Finance Corporation (IFC), a member of the World Bank group, also participated in this round of fund raising to maintain their stake percentage. The investment will be primarily used to fund future growth of the company.
Commenting on the development, Sanjay Agarwal, Managing Director and founder, Au Financiers said, “Since its inception Au Financiers has been working extensively to reach out to the millions of unbanked people in India and provide them access to organized finance. In this process it has helped many of its borrowers to shape their future. Raising private equity capital from IBEF and IBEF-I in 2008 was a significant milestone in our journey. Another significant step in our journey was raising private equity in 2010 which was led by IFC, Washington. The current round led by Warburg Pincus is the single largest equity infusion in the Company which would double our networth. With the support from our well-reputed investors we are confident that we will continue to grow in an accelerated manner and take our business to a different level of size and scale. We have also recently forayed into housing finance where we have significant growth plans to tap into the huge unmet demand.
Vishal Mahadevia, Managing Director, Warburg Pincus India Private Limited said, “Warburg Pincus’ growth-oriented investment in Au Financiers reflects its recognition of the company's high quality leadership team led by Sanjay Agarwal. Warburg Pincus will look forward to helping the company achieve its vision of being regarded as a highly respected industry leader.”
Thomas Davenport, Director, IFC, South Asia added, “This investment is a continuation of our long standing relationship with Au Financiers. The organization has demonstrated strong growth potential with high development impact in unserved and under-served markets.”
Vishal Tulsyan, CEO and Director, Motilal Oswal Private Equity Advisors said, “We have enjoyed a long and fruitful association with Au Financiers and it is heartening to see how the Company has grown since our investment in 2008. We welcome Warburg Pincus as a partner and look forward to work together with Warburg Pincus and IFC in the next stage of the Company’s growth.”
Ernst & Young and Wadia Ghandy advised Au Financiers on the transaction. Amarchand Mangaldas and KPMG acted as the advisor to Warburg Pincus. AZB Partners were advisors to IFC. Ladderup Corporate Advisory and Rajani Associates acted as advisors to IBEF and IBEF-I.