In a major boost to India’s financial services sector, Tokyo-based Mizuho Financial Group is set to buy a majority stake in Indian investment bank Avendus Capital for USD 700 million (~INR 6,000 crore). This is Mizuho’s biggest bet on India and a strategic move to deepen its presence in the subcontinent’s rapidly evolving financial landscape.
Mizuho, Avendus Deal: Terms and Parties
Mizuho will buy 60% stake held by global private equity firm KKR & Co. and exit of Avendus co-founder Ranu Vohra, several early high net worth individual (HNI) investors and minority shareholders including Gaja Capital. Post deal, Mizuho will have up to 70% stake in Avendus while the remaining founders Kaushal Aggarwal and Gaurav Deepak will continue to run the business with Mizuho having veto rights.
Sources close to the deal said the terms were finalised after months of intense negotiations during which multiple bidders including Carlyle, Nomura, TPG, TA Associates and even Nomura (which was advising the sale) expressed interest. Mizuho emerged as the front runner due to strategic alignment and cross border synergies.
Rothschild & Co was the exclusive financial advisor to the sell side.
Avendus
Founded in 1999 by three IIT alumni — Ranu Vohra, Kaushal Aggarwal and Gaurav Deepak — Avendus Capital has grown into one of India’s largest homegrown financial services firms. With presence in 10 Indian cities and international offices in US and Singapore, the firm operates across investment banking, institutional equities, wealth management, credit solutions and asset management.
In the nine months ending December 2024, Avendus reported consolidated revenue of INR 1,035 crore and net profit of INR 170 crore with a profit margin of 16.43%. The acquisition of Spark Capital in 2022 had significantly boosted its capital markets and ECM (equity capital market) capabilities. KKR will get a 3.5x return in 9 years on its investment of INR 950-1,000 crore.
Mizuho’s Indian Ambition Grows
This is not an isolated event. It is the latest in a series of moves by Mizuho to expand in India and other emerging Asian markets. With 5 branches in India and over USD 500 million (~INR 4,280 crore) already invested in the country, Mizuho has also taken 15% stake in Kisetsu Saison Finance (India), the Indian subsidiary of Credit Saison, to develop it into a trillion-yen financing powerhouse.
Mizuho has also hired former KKR India head Sanjay Nayar as a senior advisor to leverage local expertise. Globally, Mizuho’s M&A playbook has been the 2023 acquisition of Greenhill & Co for USD 550 million (~INR 4,710 crore) to build global investment banking and advisory capabilities.
Japanese Interest in Indian Financial Services on the Rise
Mizuho’s push into India is part of a broader trend of Japanese financial institutions looking for long term growth in India. Earlier, Sumitomo Mitsui Banking Corporation (SMBC) acquired 20% stake in Yes Bank, surpassing the RBI’s 15% cap for foreign strategic investors — a move cleared on a case-by-case basis by the central bank as part of its evolving regulatory stance.
India’s financial services sector is one of the most regulated globally but is gradually liberalizing. RBI has shown more flexibility towards foreign investments, especially strategic ones that bring value addition beyond capital.
Strategic Synergies and Future
For Mizuho, the acquisition of Avendus gives immediate access to India’s growing IPO and M&A advisory markets and wealth and asset management segments. Avendus’ deep client relationships and domestic brand presence can complement Mizuho’s international expertise and capital to play a key role in cross-border deals.
Industry experts say while the investment banking business is cyclical, Avendus has diversified its revenue streams — through Spark Capital and growing credit and institutional equities divisions. Crisil recently noted a revival in Avendus’ investment banking business in FY25 after a subdued FY24. Mizuho-Avendus deal will be announced during Mizuho CEO Masahiro Kihara’s India visit. This is more than a transaction. It’s a bet on India’s growth story and a signal that Japanese capital sees a long term partner in India’s financial sector.
Key Takeaway:
- Deal Size: USD 700 million (INR 6,000 crore)
- Seller: KKR & Co. (60% stake)
- Buyer: Mizuho Financial Group (up to 70% stake)
- Avendus Net Profit (Apr–Dec 2024): INR 170 crore
- Avendus Revenue (Apr–Dec 2024): INR 1,035 crore
- KKR Investment (2015): INR 950–1,000 crore
- Expected Return: ~3.5x
Conclusion
Mizuho-Avendus deal is a milestone in Indo-Japanese financial partnership. It shows the growing interest of Japanese investors in India’s high growth, reform oriented financial services space — a space that’s ripe for disruption with digital transformation, regulatory evolution and global capital realignment.
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