**Partners Group to Acquire Majority Stake in Infinity Fincorp for ₹1,950 Crore**
Swiss private equity firm Partners Group is poised to acquire a majority stake in shadow lender Infinity Fincorp for ₹1,950 crore ($230 million), as announced by both companies on Thursday. The deal comprises a primary capital infusion of ₹600 crore ($70 million) and a secondary share purchase from existing shareholders, including Indium IV (Mauritius) Holdings, a fund managed by True North. The exact percentage of the stake being acquired has not been disclosed.
Partners Group secured the acquisition after outbidding competitors Advent International and Creador, both of which were also interested in obtaining a controlling interest in Infinity Fincorp. The ₹600 crore primary investment is intended to facilitate Infinity’s expansion of its branch network, enhance technology systems, and streamline customer onboarding processes.
Infinity Fincorp, based in Mumbai, specializes in providing secured loans to micro, small, and medium enterprises (MSMEs), particularly in Tier 2 and Tier 3 cities. The company operates over 120 branches across eight states and manages assets exceeding ₹1,200 crore. This acquisition marks Partners Group’s inaugural entry into India’s MSME lending sector. Infinity Fincorp serves nearly 50,000 clients across various sectors, including agriculture, manufacturing, and trade, and employs over 1,500 staff members.
The transaction is subject to approval from the Reserve Bank of India (RBI) and will result in Partners Group taking over as the majority shareholder from Indium IV. Existing investor Jungle Ventures will maintain a stake and participate in the new funding round. The current leadership team, including founder and CEO Shrikant Ravalkar, will continue to oversee operations.
Founded in 2016 as a subsidiary of National Bulk Handling Corporation and initially backed by Indium IV Holdings, Infinity provides secured business loans to MSMEs in underserved regions. The company operates in eight states in western and southern India, with a network of 123 branches and 1,507 employees. Notably, Andhra Pradesh, Telangana, and Tamil Nadu account for 75% of its total assets under management.
Infinity primarily offers loans secured by residential or commercial properties, targeting small businesses such as traders, retail shops, dairy outlets, kirana stores, and medical or provision stores. Earlier this year, the company raised $40 million in an extended Series A funding round led by Beams Fintech Fund, with participation from existing investors True North LLP, Jungle Ventures, and Archerman Capital. In January, it had already secured $35 million from Jungle Ventures, Archerman Capital, and Magnifico.
**FAQ**
*What is the significance of Partners Group’s acquisition of Infinity Fincorp?*
The acquisition signifies Partners Group’s entry into the Indian MSME lending market, allowing them to expand their investment portfolio and support the growth of small businesses in underserved regions.
