ChrysCapital partners with BPEA EQT To acquire HDFC Credila
A ChrysCapital and BPEA EQT consortium will acquire a 90% stake in HDFC Credila, one of India’s leading providers of tailored financing solutions for students pursuing academic studies in India and abroad, from its parent company Housing Development Finance Corporation Ltd. (HDFC). HDFC will retain a 9.99% stake. ChrysCapital-led funds plan to invest over $250M of the consortium’s total investment of $1.3B in HDFC Credila.
The consortium will also infuse primary capital in HDFC Credila to support its next phase of growth while maintaining the core focus on funding postgraduate studies for Indian students. The consortium aims to accelerate the Company’s digital transformation, utilizing its deep expertise in financial services, in-house digitalization expertise, solid track record within cyber security and credit underwriting, and proven go-to-market capabilities within banking and loan management.
Arijit Sanyal, MD and CEO of HDFC Credila said, “Having established ourselves as one of the largest NBFCs in the education finance sector in India, we are delighted to welcome our new investors BPEA EQT and ChrysCapital. Our association with such marquee investors will fuel the next chapter in HDFC Credila’s journey and enable us to scale new heights. ChrysCapital has been a prolific investor in financial services over the last 20 years and we look forward to utilizing their network and experience. We also welcome HDFC’s decision to retain a 9.99% stake in the Company and look forward to our continued association. I thank all our stakeholders and employees for their continued support. I am extremely optimistic about our future and look forward to the next steps.”
Sanjay Kukreja, Partner and CIO of ChrysCapital, commented, “ChrysCapital is excited to partner with BPEA EQT and help support HDFC Credila in its next leg of growth. Financial services has been a focus investment sector for ChrysCapital with more than a quarter of total deployments over the last 20 years and more than a third of realizations. This transaction is in tandem with ChrysCapital’s strategy to increase focus on buyout transactions across sectors. This transaction is the fourth investment and third buyout from ChrysCapital’s latest $1.4B ninth fund, and is also the fund’s second buyout in financial services after the investment in Bandhan Mutual Fund earlier this year.”
Ankit Singhal, Director and Sector Lead, Financial Services at ChrysCapital Advisors, added, “HDFC Credila is a marquee asset with an envious track record of strong growth and pristine asset quality. Growing demand for quality higher education, the trend of parents and students increasingly looking overseas for higher education, and the underpenetrated formal financing market make it an attractive space with long-term tailwinds. We believe HDFC Credila, being one of the market leaders, is well-positioned to capitalize on the continuing growth momentum in this segment, and are confident that the Company is poised to deliver strong outcomes for all stakeholders under the able stewardship of Arijit Sanyal, MD and CEO, and the broader management team. The respective strengths of BPEA EQT and ChrysCapital would provide a strong thrust to HDFC Credila to help scale greater heights over the investment horizon.”
ChrysCapital was advised by Arpwood Capital, E&Y (financial, tax, ESG, and technology), Awelin (digital), and Shardul Amarchand Mangaldas (legal) on the transaction. Jefferies acted as the exclusive financial advisor to HDFC Limited and HDFC Credila on the transaction.