Japanese giant Mizuho to acquire Avendus Capital for $700 million: Report

Other bidders like Carlyle and Nomura were in contention, but Mizuho emerged the frontrunner due to strategic alignment and cross-border synergy potential, as per the report.

Japanese financial giant Mizuho Financial Group is reportedly set to acquire KKR-backed Avendus Capital in a deal valuing the Indian investment bank at Rs 6,000 crore ($700 million).

The agreement comes after months of negotiations and will mark Mizuho’s largest investment in India, according to sources cited in an Economic Times report.

Mizuho CEO Masahiro Kihara is expected to visit India this week for the official announcement.

The deal includes KKR exiting its 60 percent stake, along with early investors and co-founder Ranu Vohra, as per the report. The remaining founders, Kaushal Aggarwal and Gaurav Deepak, will stay on to lead operations, though Mizuho will have veto rights. Mizuho is likely to own up to 70% of Avendus post-deal.

Moneycontrol could not independently verify the report.

Founded in 1999, Avendus operates across investment banking, credit solutions, institutional equities, wealth, and asset management. Its acquisition of Spark in 2022 bolstered its capital markets presence. For the nine months ending December 2024, the firm reported ₹1,035 crore in revenue and ₹170 crore in net profit.

KKR, which invested Rs 950-1,000 crore in Avendus in 2015, is expected to make a 3.5x return. Other bidders like Carlyle and Nomura were in contention, but Mizuho emerged the frontrunner due to strategic alignment and cross-border synergy potential, as per the report.

Notably, the deal highlights Japan’s growing interest in India’s financial sector.

Recently, SMBC invested in Yes Bank and Mizuho took a 15 percent stake in Kisetsu Saison Finance. With five branches in India, Mizuho has already infused $500 million into its operations and appointed KKR’s former India head Sanjay Nayar as an advisor. The formal announcement is expected later this week.