WestBridge Capital to pick up 15% stake in MF arm of Edelweiss Financial Services

WestBridge Capital to pick up 15% stake in MF arm of Edelweiss Financial Services

Edelweiss Financial Services Limited (EFSL) has announced that WestBridge Capital is acquiring a 15% stake for a consideration of Rs 450 crore in Edelweiss Asset Management Limited (the Asset Manager of Edelweiss Mutual Fund).

On August 20, Moneycontrol was the first to report that WestBridge Capital had emerged as the front-runner to pick up a minority stake in Edelweiss Asset Management.

"Edelweiss Mutual Fund (Edelweiss MF) is one of the key businesses for EFSL and currently manages Rs 72,600 crore of Equity AUM, which has grown by 53% over the last 5 years. Edelweiss MF had a Profit after tax of Rs 53 crore for FY25. The current transaction values the business at 57x P/E which aligns with industry benchmarks of 30x to 60x," the announcement said.

It added, "This transaction is beneficial for all stakeholders and comes at an opportune time for Edelweiss MF as it now shifts into next phase of growth. For EFSL, this transaction underscores the objective of value creation and value unlock journey in the MF business; for Edelweiss MF, it strengthens the growth trajectory and the path to being an institutionalised independent business; and for WestBridge, it marks a strategic entry into a high-growth, well-governed MF business with proven leadership and scale potential."

Edelweiss MF, one of India’s fastest-growing AMCs, has reached a total AUM of Rs 1,52,200 crore as of June 30, 2025, reflecting a 44% CAGR over the last five years. Edelweiss MF reported PAT of Rs 28 crore for the first quarter of FY26 — demonstrating a strong momentum and improved operating leverage. Over a 10-year period, Edelweiss MF has moved from the 36th to the 13th position in the industry.

Rashesh Shah, Chairman & MD, EFSL, said: “Welcoming WestBridge Capital as a strategic partner is a timely step in the value-creation journey at Edelweiss MF. We have built a robust, innovation-led mutual fund franchise with strong equity momentum. This transaction reflects the confidence in the long-term potential of our Mutual Fund business. It initiates the value unlock for EFSL, strengthens the growth path of Edelweiss MF, and brings in a seasoned long-term partner.”

Radhika Gupta, MD & CEO, Edelweiss MF, said: “Edelweiss MF has scaled rapidly through focused execution - consistent fund performance, product innovation, and widening distribution strength. We are delighted to partner with WestBridge Capital - a likeminded and long-term partner - whose strategic insights and ecosystem will accelerate our next phase of growth. The mutual fund opportunity in India is just taking off and we are confident that we can build Edelweiss MF into one of India's most admired asset managers.”

Deepak Ramineedi, Partner at WestBridge Capital, said: "We are extremely pleased to partner with Edelweiss Mutual Fund at this exciting stage of its growth journey. Under Radhika’s leadership, Edelweiss MF has demonstrated excellent execution with a sharp focus on innovation. We believe financialisation of savings is a massive industry tailwind and strongly believe Edelweiss MF is very well placed to benefit from the same. We look forward to supporting the team in scaling the business further."

The transaction is subject to approvals of the Securities and Exchange Board of India, the Competition Commission of India and other customary approvals.

Nomura Financial Advisory and Securities (India) Private Limited acted as the exclusive financial advisor to EFSL. Khaitan & Co. acted as legal advisors to EFSL and Edelweiss MF, and Trilegal acted as legal advisor to WestBridge Capital.