TVS arm Home Credit to buy education loan company for Rs 967 crore

Home Credit India Finance, a subsidiary of TVS Holdings, signed a share purchase agreement to acquire Varthana Finance for Rs 967 crore in an all-cash deal.

Varthana Finance specializes in education lending and will become a wholly owned subsidiary of Home Credit India after the transaction.

The acquisition aims to diversify Home Credit's portfolio, improve business mix, and create synergies in distribution, technology, and risk management.

The deal is subject to regulatory approvals and is expected to close within nine months.

This marks TVS group's expansion in the non-banking financial services sector, adding secured and longer-tenure lending capabilities.