Mahindra & Mahindra Financial Services Ltd. ,has entered into a joint venture with Ideal Finance Ltd., a fully owned subsidiary of the leading Sri Lankan conglomerate, Ideal Group.
Mahindra Finance will invest Rs 2 billion until March 2021 forup to 58.2% stake in Ideal Finance.
Mahindra Finance is one of India’s leading Non-Banking Finance Companies ,focused on the rural and semi-urban markets
The joint venture will capitalize on Mahindra Finance’s 25-year expertise in the financial services domain and Ideal Finance’s domestic market knowledge to build a leading financial services business in Sri Lanka, officials said.
Mahindra Finance has been looking at expanding its market overseas as part of its global growth strategy.
With this joint venture Mahindra Finance aims to replicate in Sri Lanka, its successful, socially inclusive business model.
The Company has created unique products designed around the evolving needs of the customer, and delivers these through a wide network of branches and the optimum use of technology.
Mahindra Finance has fueled the entrepreneurial aspirations of over 6.2 million customers in over 370,000 villages in India, and manages an AUM of over USD 10 Billion.
Ideal Finance Ltd. (IFL), has an asset base of Rs 4.4 billion and an equity base of Rs. 1.1billion.
It has ten branches, of which nine are outside the western province located in Jaffna, Anuradhapura, Kurunegala, Bandarawela, Embilipitiya, Moneragala, Elpitiyia, Matara & Kandy. Its current staff strength is 142, a majority of which are based in the branches.
Nalin Welgama, Chairman, Ideal Finance Ltd., said, “Mahindra Finance will bring with them most invaluable sector exposure, vision and life blood in terms of capital infusion to Ideal Finance.
All NBFIs are required to have Rs 2.5 billion in core capital by 1st January 2021. No doubt Ideal Finance shall be elevated to a Tier1 category with this partnership in a short span of time, he said