MC EXCLUSIVE Westbridge Capital emerges front-runner for stake buy in MF arm of Edelweiss Financial Services

Rashesh Shah, Chairman and MD of Edelweiss Group (Courtesy: X | @rasheshshah)

Westbridge Capital, a $7bn global investment firm which focuses primarily on public and private investments in India and the US, has emerged as the front-runner to pick up a minority stake in Radhika Gupta-led Edelweiss Mutual Fund, a subsidiary of Edelweiss Financial Services, multiple industry sources in the know told Moneycontrol on the condition of anonymity.

"The deal is in the final leg and Westbridge Capital, which has made multiple bets previously in the domestic financial services space, is the lead contender as of now," said one of the persons cited above.

Two other persons confirmed the same.

The exact quantum of the minority stake to be sold or the deal size was not specified by these three persons but one of them added, "If discussions proceed between both parties, a deal could be signed shortly, maybe as early as this week or next week."

A fourth person elaborated, "The target has a good business, and this transaction is part of the normal course of evolution of the firm, which may explore a listing in two to three years. Investment bank Nomura is acting as the sell-side advisor."

Three years back, ChrysCapital and GIC had bet on IDFC MF in a Rs 4,500 crore buyout, but both funds were part of a consortium led by a strategic player, namely Bandhan Group. In 2021, Blackstone acquired the asset management and wealth management business of ASK Group.

Email queries to Edelweiss Financial Services, Edelweiss MF, Westbridge Capital and Nomura remained unanswered at the time of publishing this article. Reminders have been sent. Text messages sent to Rashesh Shah, Chairman and MD of Edelweiss Group did not elicit a response. This article will be updated as soon as we hear from the parties.

Meanwhile, the share price of Edelweiss Financial Services has slipped by nearly 16 per cent in the last month.

"To further strengthen our international business, we are open to exploring opportunities with minority strategic partners, ensuring there is a strong alignment in values and vision," Radhika Gupta, the MD and CEO of Edelweiss MF had said earlier in a media report.

As of 31 July 2025, Edelweiss Mutual Fund had an AUM ( assets under management) of Rs 1.52 lakh crore with 20.70 lakh investors and 15,000 plus active partners. The business is spread across 48 locations, as per the official website.

A closer look at Westbridge Capital

In the financial services space in India, Westbridge Capital has bet on the likes of HDFC Bank, ICICI Bank, Bajaj Finance, Axis Bank, Aptus Housing Finance, AU Small Finance Bank, Yes Bank and Star Health insurance.

Wealth management platform FundsIndia, account aggregator Finvu, education financing company Propelld, accounting software Vyapaar and debt recovery digital platform Credgenics are also part of its India kitty.

Recently, WestBridge Capital entered into a joint venture with Neelesh Garg (former MD & CEO of Tata AIG General Insurance), to set-up a general insurance company, Kiwi General Insurance.

Over and above financial services, it has also invested in the likes of Meesho, Physicswallah, Third Wave Coffee, Vini Cosmetics, Just Dial and Naukri.com

According to its Linkedin page, WestBridge Capital, which has offices in Silicon Valley, Bangalore and Mauritius, partners with transformative entrepreneurs in India and the US at every stage, for the long term.

" For over 20 years, we have discovered and led investments in more than 150 companies, with a nexus to India, across both private and public markets, often as their largest institutional partner. In addition to long term capital, with investments ranging from Series A to public, we help companies succeed through hands-on portfolio support, deep market expertise, and a strong global network," the page adds.