Global private markets firm Partners Group will acquire a majority stake in Mumbai-based NBFC Infinity Fincorp Solutions for 1,950 crore rupee (US$227.7 million).

The deal includes a 600 crore rupee (US$70 million) primary capital infusion and a secondary share purchase from existing shareholders, including Indium IV (Mauritius) Holdings Limited, advised by True North Managers LLP.

Jungle Ventures, an existing investor, also participated.

The transaction is pending approval from the Reserve Bank of India (RBI).

Infinity Fincorp focuses on secured lending to SMEs in Tier II and III towns across eight Indian states. It operates over 120 branches, manages assets over 1,200 crore rupee (US$140 million), and serves around 50,000 customers.

The capital will be used for branch expansion and technology upgrades.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ PE firms increasingly target Indian NBFCs amid sector transformation

Partners Group’s acquisition of Infinity Fincorp reflects a broader trend of private equity interest in India’s financial services sector.

The Indian private equity market saw significant growth in recent years, with the banking, financial services, and insurance (BFSI) sector attracting nearly $5 billion in investments in a single year, making it a primary focus for investors1.

This transaction represents a strategic entry into India’s NBFC space by global investors seeking exposure to India’s growing credit demand, particularly in underserved markets.

The deal structure, combining primary capital infusion with secondary share purchases, follows established patterns in PE investments, allowing new investors to provide growth capital while offering liquidity to early backers.

Regulatory changes in the NBFC sector have created both challenges and opportunities, with increasing compliance requirements creating barriers to entry while also establishing more stable operating environments that attract sophisticated investors2.

2️⃣ NBFCs targeting underserved markets represent strategic growth opportunities

Infinity Fincorp’s focus on SMEs in Tier II and III towns highlights a significant market opportunity that traditional banks have struggled to address effectively.