PE firm Apollo Global launches majority stake sale process in NBFC Clix Capital 

Clix Capital Services Private Limited (formerly known as GE Money Financial Services Private Ltd), and Clix Finance India Private Limited, was originally established by the GE Group in 1994. 

Global private equity firm Apollo Global Management has initiated the process to sell a majority stake in portfolio firm non-banking finance company NBFC Clix Capital, three persons in the know told Moneycontrol on the condition of anonymity.

"The deal has been launched recently and management discussions are on. Apollo Global has been invested for a long time, 8 years, and is in exit mode. They are open to offer 51 per cent and cede control but the final stake quantum will depend on valuations and what the buyers are seeking," said one of the persons above.

In 2016, former GE India duo Pramod Bhasin and Anil Chawla ( holding 15 percent), along with the backing from private equity firm AION Capital Partners Limited (85 percent stake) acquired both businesses. AION is a joint venture between ICICI Venture Funds and US-based Apollo Global Management, which ended in 2020, and currently, Apollo Global is directly managing the group.

"Both private equity and strategic suitors will be tapped for this opportunity. Pramod and Anil are also investors and will take a call on any potential stake dilution or exit depending on the pricing of the deal, among other factors, " a second person added.

A third person told Moneycontrol that investment banks Barclays and Moelis have been mandated as the joint sell-side advisors with Apollo Global targeting a valuation between $400-$500 mn.

" An IPO becomes a challenge when you hold such a large stake, so depending on the final deal structure, maybe the new buyer can join Apollo Global and list the firm together at a later stage if required, " the third person added.

Email queries along with reminders sent to Apollo Global and Clix Capital remained unanswered at the time of publishing this article. This article will be updated as soon as we hear from both parties. When contacted, Barclays and Moelis declined to comment.

The move to sell a controlling stake comes months after Delhi-based Clix Capital raised Rs 220 crores in a round led by existing investors - Apollo Global Management, Pramod Bhasin and Anil Chawla.

On July 29, Moneycontrol was the first to report that Clix Capital was seeing inbound interest from global funds as well as domestic non-banks. The report added that the firm may also explore an IPO later.

“I think Rs 10,000 crore ( in AUM) puts us in a sweet spot. That is the magical number that we want to cross before we start evaluating an IPO,” Rakesh Kaul, CEO, of Clix Capital told the Financial Express in June, adding that the firm is planning to borrow around Rs 5,000 crore in FY25 from various sources.

­Clix Capital Services Private Limited (formerly known as GE Money Financial Services Private Ltd), and Clix Finance India Private Limited, were originally established by the GE Group in 1994.

It focuses on underserved segments like MSMEs, education, and healthcare and leverages technology and data analytics to deliver lending solutions. As per its FY23-24 annual report, the firm achieved an asset under management of Rs. 6,000 crore with a net worth of Rs 2,095 crore. It surpassed a total lifetime disbursal of Rs 25,000 crore, its profits rose by 125 per cent to Rs 65 crore and it gross NPA's were reported at less than 2 per cent, the annual report added.

On September 12, Care Ratings upgraded the long-term rating of the company from “A” to “A+” and the short-term rating from A1 to A1+.

According to the CARE Ratings report, “The upgrade in the ratings assigned to the bank facilities and instruments of CLIX Capital Services Private Limited (CLIX) is on account of its demonstrated ability to profitably scale up its operations quarter on quarter, with a notable improvement in asset quality. Ratings also factor in the comfortable capitalisation profile of the company, which was further supported by the capital infusion of 220 crore on July 24. “

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