TVS Venu Group's Home Credit India to Acquire Varthana Finance for ₹967 Crore
Home Credit India to Acquire Education Finance Player Varthana
Home Credit India Finance Pvt Ltd has executed a share purchase agreement on July 15, 2026, to acquire 100 per cent of the issued, subscribed and paid-up share capital of Varthana Finance Pvt Ltd, marking TVS Holdings' deepening presence in specialised lending.
Transaction Structure
The all-cash transaction values Varthana Finance at ₹967 crore. The acquisition is expected to be completed within nine months from the execution of the agreement, subject to regulatory approvals and fulfilment of other conditions precedent.
The proposed transaction is subject to receipt of applicable regulatory approvals, including approval from the Reserve Bank of India, and fulfilment of customary closing conditions.
Varthana's Operations and Growth
Varthana Finance focuses on providing financial solutions to private schools across India, offering loans that support infrastructure development, expansion, and operational requirements. Varthana Finance was formerly known as Thirumeni Finance Private Limited.
The company has demonstrated steady revenue expansion. During FY26, the company reported a turnover of ₹398.31 crore, profit after tax of ₹18.65 crore and a net worth of ₹574.23 crore. Its turnover has grown consistently over the last three financial years, increasing from ₹284.27 crore in FY24 to ₹325.69 crore in FY25 and ₹398.31 crore in FY26.
Strategic Rationale
Varthana has built a differentiated franchise within the education-finance ecosystem, with deep expertise in a specialised lending segment, and the proposed acquisition will broaden Home Credit India's participation in secured and longer-tenure lending while complementing the Group's existing strengths.
Following completion of the transaction, Varthana will become a wholly owned subsidiary of Home Credit India and a step-down wholly owned subsidiary of TVS Holdings. The acquisition is not a related-party transaction.
TVS Holdings' Financial Services Portfolio
This acquisition represents TVS Holdings' continued expansion in financial services. TVS Holdings announced the successful completion of its acquisition of an 80.74 per cent equity stake in Home Credit India Finance for ₹554 crore, with the remaining 19.26 per cent of the equity stake purchased by Premji Invest and other associates. Following the deal, together with TVS Credit, the group is eyeing a lending book size of ₹50,000 crore in the next three years, up from ₹33,000 crore.
Home Credit India is one of the leading players in the consumer financing market with assets under management of ₹5,535 crore as of March 2024, and has an employee base of 3,800 and a strong network of over 50,000 points-of-sale spread over 625 cities across India.