Mubadala Ventures into India's Financial Sector with Strategic Investment in Avanse

Mubadala Ventures into India's Financial Sector with Strategic Investment in Avanse

By Staff Writer, 27 March 2024

Mubadala Investment Co., a prominent state investor based in Abu Dhabi, has announced its inaugural venture into India's financial services domain.

Through its affiliate, Alpha Investment Company LLC, Mubadala has made a strategic investment in Avanse, a leading Indian financial services firm.

Alongside Mubadala, Avendus PE Investment Advisors Private Ltd, operating through its fund Avendus Future Leaders Fund II, also participated in the funding round, which amassed a substantial 10 billion Indian rupees (approximately $120 million).

This significant investment marks Mubadala's pioneering step into India's financial landscape and aligns with its ambitious agenda to amplify its presence in Asia by 2030, doubling its current exposure in the region.

Although the precise magnitude of Mubadala's investment remains undisclosed, the move signifies a calculated strategic maneuver aimed at capitalizing on India's burgeoning financial sector.

Read More: UAE's Mubadala Acquires KELIX bio to Drive Healthcare Innovation

The infusion of funds is poised to catalyze Avanse's growth trajectory, particularly in the realm of education financing.

As a non-banking financial company (NBFC) with a keen focus on education, Avanse is poised to leverage this capital influx to fortify its market position.

The company's strategic objectives revolve around enhancing customer experiences and sustaining profitable growth in the highly competitive education financing segment.

Currently, majority-owned by the esteemed US private equity firm KKR, Avanse boasts significant assets under management, valued at approximately 5.5 billion dirhams as of December 2023.

With this fresh injection of capital, Avanse is poised to further expand its footprint and solidify its standing as a key player in India's dynamic financial landscape.

Source: Brinda Darasha / Zawya

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