Chennai: Home Credit India Finance, a subsidiary of TVS Holdings Ltd, has agreed to acquire a 100% stake in Varthana Finance Private through an all-cash transaction valued at Rs 967 crore.The company signed a share purchase agreement on July 15. The transaction is subject to approvals from various regulatory authorities. Upon completion, Varthana Finance will become a wholly owned subsidiary of Home Credit India Finance and a step-down wholly owned subsidiary of TVS Holdings, which is part of the TVS Venu faction of the larger TVS Group.Varthana posted revenue of Rs 398 crore and a profit after tax of ₹19 crore in FY26, while its net worth stood at Rs 547 crore.The transaction comes just two months after the TVS Venu group acquired about a 10% stake in Jana Small Finance Bank for Rs 193 crore. Home Credit India itself was acquired by the TVS Venu group in a Rs 554-crore transaction that was completed last year.The current acquisition will add Varthana’s education finance business to the TVS Venu group’s financial services portfolio, expanding its presence in secured, longer-tenure lending and diversifying its loan book.Sudarshan Venu, chairman of TVS Motor Company, said India’s financial services sector continues to offer significant opportunities for long-term growth, driven by rising formalisation, expanding credit access and the increasing need for specialised lending solutions.“Varthana has built a differentiated franchise within the education finance ecosystem, with deep expertise in a specialised lending segment and a strong reputation among the institutions it serves. The proposed acquisition will broaden our participation in secured and longer-tenure lending while complementing the group’s existing strengths,” he said.Steve Hardgrave, whole-time director and vice-chairman of Varthana, said the partnership with TVS would help the company expand its reach and strengthen its platform for lending to private schools across the country.The TVS Venu group, through TVS Credit Services and Home Credit India, has an established presence in consumer, retail and commercial finance. Its flagship company is TVS Motor Company, while it also has a presence in the real estate sector through TVS Emerald.
