One of the largest private equity deals in India’s NBFC sector in 2025 marks a strategic vote of confidence in the underserved MSME lending space.
In a big-ticket transaction reflecting the growing global interest in India’s non-banking financial services sector, Swiss private equity major Partners Group has agreed to buy a majority stake in Infinity Fincorp Solutions, a Mumbai-based NBFC focused on lending to micro, small and medium enterprises (MSMEs). The deal is valued at INR 1,950 crore (~USD 230 million), one of the largest PE investments in the Indian NBFC space this year.
Partner Group-Infinity Fincorp Deal Details
- A fresh capital infusion of INR 600 crore (~USD 70 million) into Infinity Fincorp.
- A secondary share purchase from Indium IV (Mauritius) Holdings Limited, a fund managed by Global Opportunity Advisors (Mauritius) and advised by True North Managers LLP.
- Support from existing investors Jungle Ventures and Beams Fintech Fund.
The deal is structured via a share purchase and subscription agreement and is subject to RBI approval. Avendus Capital was the exclusive advisor to both Infinity and Indium IV for the transaction.
Infinity Fincorp
Founded in 2017 by Shrikant Ravalkar, who continues to be the Managing Director and CEO, Infinity Fincorp has quickly created a niche by offering secured lending solutions to MSMEs in Tier II and Tier III towns across India.
With 120+ branches across eight states, the NBFC has a loan book of over INR 1,200 crore (~USD 140 million) and serves around 50,000 customers—mostly small traders, manufacturers and farmers who are underserved by traditional banking channels. The company reported a profit of INR 25.7 crore on revenue of INR 143.7 crore in FY24, strong fundamentals and scalable business. designed to unlock business growth for MSMEs in semi-urban and rural India.
Strategic Intent and Growth Roadmap
The capital infusion is expected to accelerate Infinity’s expansion plans, including:
- Aggressive branch rollout in underbanked regions.
- Technology and digitisation upgrades, especially in customer onboarding and loan disbursal.
- AI-powered lending to streamline processes and the borrower experience.
The company plans to bridge India’s massive MSME credit gap of INR 33 lakh crore, growing at 16% annually by leveraging its local presence, customised products and now global capital.
Partners Group’s India Strategy
For Partners Group, which manages over USD 150 billion globally, this is a continuation of its thematic focus on Indian financial services, particularly non-bank lenders serving the “real economy”. The firm has previously backed Indian names like Vishal Mega Mart, Aavas Financiers, Ecom Express, and Darwinbox.
“We believe non-bank lenders like Infinity have an edge in serving MSMEs due to their specialised operations and ability to offer customised credit solutions,” said Vageesh Gupta, Managing Director, Private Equity at Partners Group. “Infinity has been on an incredible journey, and we are excited to support its next phase.”
Murali Krishnan Nair from Partners Group added that Infinity’s employee-centric culture and deep regional knowledge will help it become a “high-quality, lasting institution”.
Drawing from its experience in scaling Aavas Financiers – an affordable housing finance company it exited earlier this year – Partners Group plans to implement a similar value creation strategy at Infinity focused on digital transformation and operational scale.
Exit for True North, Continued Backing from Jungle Ventures and Beams
The transaction is a full exit for True North, which had backed Infinity through its fund Indium IV. “Infinity has scaled up so well in just a few years with strong credit quality and disciplined execution,” said Nitin Nayak, Indium IV’s nominee on Infinity’s board. Jungle Ventures and Beams Fintech Fund will continue to remain invested. “Infinity is scaling well with strong unit economics,” said Arpit Beri of Jungle Ventures. Sagar Agrawal, Managing Partner at Beams, called Partners Group’s entry “a big thumbs up” for Infinity’s model.
Conclusion
Infinity Fincorp is now one of the most exciting NBFCs serving India’s massive MSME sector. As India continues its journey of economic formalisation and financial inclusion, such partnerships – global capital and grassroots lending – will be the shape of things to come in Indian fintech.
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