Japan’s Mizuho Bank invests: one of the largest banks in Japan, has acquired a 15% stake in Credit Saison India, a non-banking financial company, for Rs 1,200 crore. The deal will help Credit Saison India expand its digital lending business in India and tap into the growing demand for credit among underserved segments.
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Introduction
Mizuho Bank, one of the largest banks in Japan, has acquired a 15% stake in Credit Saison India, a non-banking financial company (NBFC), for Rs 1,200 crore. The deal, which was announced on Tuesday, values Credit Saison India at Rs 8,000 crore and marks the first investment by a Japanese bank in an Indian NBFC.
Credit Saison India, which was launched in 2018, is a joint venture between Credit Saison, a leading consumer finance company in Japan, and Capital Float, a digital lending platform in India. The company offers a range of credit products, such as personal loans, consumer durable loans, education loans, and merchant cash advances, to individuals and small businesses through its online platform and partner network.
The investment by Mizuho Bank will help Credit Saison India expand its digital lending business in India and tap into the growing demand for credit among underserved segments, such as the self-employed, the gig economy workers, and the micro, small and medium enterprises (MSMEs). The company aims to reach 10 million customers and disburse Rs 10,000 crore of loans in the next three years.
Mizuho Bank’s strategic move
Mizuho Bank, which is a part of Mizuho Financial Group, has been present in India since 1974 and offers corporate banking, project finance, trade finance, and treasury services to its clients. The bank has three branches in India, located in Mumbai, Delhi, and Bangalore.
The investment in Credit Saison India is part of Mizuho Bank’s strategy to diversify its portfolio and increase its exposure to the emerging markets, especially in Asia. The bank sees India as a key market with high growth potential and a large unbanked and underbanked population.
According to Mr. Koji Fujiwara, President and CEO of Mizuho Bank, the investment in Credit Saison India will enable the bank to leverage its global network and expertise to support the growth of the Indian fintech sector and contribute to the financial inclusion of the Indian people.
“We are delighted to partner with Credit Saison India, which has a strong track record of providing innovative and affordable credit solutions to the Indian customers. We believe that this partnership will create synergies and value for both the parties and help us achieve our vision of becoming a leading financial institution in Asia,” Mr. Fujiwara said in a press release.
Credit Saison India’s growth plans
Credit Saison India, which has a customer base of over 1.5 million and a loan book of over Rs 1,000 crore, plans to use the funds from Mizuho Bank to enhance its technology, data analytics, and risk management capabilities, as well as to expand its product offerings and distribution channels.
The company also intends to leverage the network and resources of Mizuho Bank and Credit Saison to explore new opportunities and partnerships in the Indian market and beyond.
Mr. Pankaj Bansal, CEO of Credit Saison India, said that the investment from Mizuho Bank is a testament to the company’s vision and performance in the Indian fintech space.
“We are excited to welcome Mizuho Bank as our strategic partner and shareholder. Mizuho Bank brings a wealth of experience and knowledge in the banking and financial services industry, which will help us scale up our operations and reach new heights. We look forward to working closely with them to create a positive impact on the lives of millions of Indians who need access to credit,” Mr. Bansal said in a press release.
Conclusion
The deal between Mizuho Bank and Credit Saison India is one of the largest investments by a foreign bank in an Indian fintech company and reflects the growing interest and confidence of the global investors in the Indian digital lending market.
The deal also showcases the potential of collaboration and innovation between the traditional and new-age players in the financial sector, which can benefit both the customers and the stakeholders.
With the support of Mizuho Bank, Credit Saison India is poised to become a leading player in the Indian digital lending space and a catalyst for the financial inclusion and empowerment of the Indian masses.