Japan’s Mizuho Financial Group to acquire stake in KKR-backed Avendus

Mizuho has acquired a controlling stake in the Indian financial services firm, making it another major bet by a Japanese lender in the country, according to Bloomberg.

Japan’s Mizuho Financial Group has reached an agreement with KKR-backed Avendus to pick up a stake in the Mumbai-based financial services firm, a company statement said on December 17.

KKR-affiliate Redpoint Investments Pte Ltd will sell its stake in Avendus to Japanese group’s arm Mizuho Securities, the statement said. Avendus’ co-founder and executive vice chairman Ranu Vohra will also divest his shareholding in the company, the statement said, adding that he will continue to serve in his current position until all the required approvals are obtained.

Moneycontrol had reported last week on December 12 that the year-long discussions between Mizuho and Avendus investors for a majority stake was nearing closure.

Gaurav Deepak, co-founder and CEO of Avendus Group said, “Together, we look forward to bringing innovative capital solutions to the Indian ecosystem, and leveraging our complementary strengths to create deeper financial and economic flows between India and Japan.”

According to Bloomberg, Mizuho has acquired a controlling stake in the Indian financial services firm, making it another major bet by a Japanese lender in the country. Mizuho, which is the third-largest bank in Japan, has reached an agreement to buy 61.6 percent of Avendus and is seeking approval to hike its stake to 78.3 percent for Rs 4,700 crore, Bloomberg reported.

Moreover, the deal is set to be Mizuho’s largest in the country so far, the report said.

Avendus founders Gaurav Deepak and Kaushal Aggarwal, along with the company’s current leadership team will continue to lead the firm to ensure “continuity of vision and strategic direction”, the statement said.

The company will retain its brand and identity, and gain strategic access to “Mizuho’s scale, institutional network, and global reach”.

Masahiro Kihara, President and Group CEO, Mizuho Financial Group said, “Avendus has been walking side- by-side with the entrepreneurs supporting India’s rise, and it makes us very happy to be able to welcome them as one of our key partners. Their journey parallels our own journey of innovating together with clients for social and economic development.”