Swiss private equity firm Partners Group will acquire a majority stake in non-banking finance company (NBFC) Infinity Fincorp for Rs 1,950 crore.

The deal includes a primary capital infusion of Rs 600 crore with participation from existing investor Jungle Ventures, the companies said in a statement.

 

The transaction also involves a secondary purchase of shares from existing shareholders, including Indium IV (Mauritius) Holdings, a fund advised by private equity firm True North. It did not give financial details on the secondary component.

The primary investment will help Infinity Fincorp to expand its branch network, strengthen its technology and enhance its customer onboarding processes.

Founded in 2016 by Shrikant Ravalkar, Infinity Fincorp extends secured loans to micro, small, and medium enterprises (MSMEs), primarily in tier II and tier III cities. The Mumbai-based NBFC has more than Rs 1,200 crore in assets under management (AUM), around 50,000 customers, and operates over 120 branches across eight states.

"The MSME segment contributes a significant share of national GDP, and we expect demand for credit will continue to rise," said Vageesh Gupta, managing director, private equity, Partners Group, which has previously invested in Indian companies such as Darwinbox, Ecom Express and Vishal Mega Mart.  

"We believe non-bank lenders such as Infinity have advantages in catering to these enterprises due to their highly specialised operations, which are better suited to providing customised solutions,” added Gupta.

Prior to this deal, Infinity Fincorp had raised $26 million led by Jungle Ventures in April 2024. Magnifico, an investor group of high-net-worth individuals had also participated in the funding round then.