PE firm True North plans to sell majority stake in NBFC Infinity Fincorp, eyes $325 mn-$375 mn valuation

PE firm True North plans to sell majority stake in NBFC Infinity Fincorp, eyes $325 mn-$375 mn valuation

A controlling stake may soon be up for grabs at Infinity Fincorp Solutions as lead investor home grown private equity firm True North is gearing up to exit the Mumbai-based NBFC, which specialises in providing small ticket loans against property, multiple industry sources in the know told Moneycontrol.

"True North has been invested for a while and is planning to sell its majority stake in portfolio firm Infinity Fincorp Solutions. They are likely to engage investment bank Avendus as the sell-side advisor and the deal may be launched next month," said one of the persons cited above.

A second person confirmed the above plans and told Moneycontrol that the expected enterprise value for the entire firm is between $325 million and $375 million.

"The micro lap (loan against property) segment is a niche space with not too many players and most of them are on the listing pathway. Infinity Fincorp is a single-line business, fully secured with the yield more than 20 percent and is expected to come to the market soon as an M&A option for private equity players," a third person familiar with the proposed transaction told Moneycontrol.

In the past 12-18 months, private equity players like CVC, EQT , Bain Capital, Ontario Teachers, Warburg Pincus and Mubadala have either struck deals in the NBFC space or expressed interest in transactions in the sector.

All the three persons quoted above spoke on the condition of anonymity to Moneycontrol.

An email query to True North and Infinity Fincorp Solutions was left unanswered at the time of publishing this article. Reminders have been sent to both the entities. When contacted, Avendus Capital declined to comment.

Infinity Fincorp Solutions has other external investors beyond True North. In January 2025, the firm raised $35 million in a round led by Jungle Ventures, which also saw participation from Archerman Capital and Magnifico.

The NBFC surpassed Rs 1,000 crore in Assets Under Management (AUM) as of November 2024, a 33 percent growth since March 2024. Post the fund raise led by Jungle Ventures, the firm is set to grow its AUM to Rs 1,300 crore by March 2025, said Shrikant Ravalkar, the Founder, MD & CEO post the deal announcement. It reported a profit of Rs 26 crore for FY24 and has forecast an increase to Rs 47 crores for FY25, according to reports.

The initial year of investment of True North in Infinity Fincorp Solutions was 2016, though the company pivoted to the current business model post-2019. The NBFC, which caters to the needs of small and micro-enterprises across tier-3 and -4 cities and towns, has funded 30,000-plus customers and is present in more than 130 locations as per its website.

Listed player Five Star Business Finance and IPO-bound Veritas Finance backed by Norwest Venture , Multiples PE and Kedaara Capital are the larger peers of Infinity Fincorp Solutions.

In the financial services space, the True North portfolio also includes Home First Finance, Niva Bupa, Fedbank Financial Services (Fed Fina) and AU Small Finance.

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On July 12, Moneycontol reported that Actis-owned medium and small enterprises (MSMEs)-focused non-banking finance company (NBFC) Profectus Capital was looking to dilute stake and onboard a partner.