After the transaction is finalized, Varthana Finance will be a wholly owned subsidiary of Home Credit India and a step-down wholly owned subsidiary of TVS Holdings.
This acquisition is contingent on obtaining approvals from the Reserve Bank of India (RBI) and other statutory and regulatory bodies, as well as meeting conditions specified in the SPA.
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Varthana Finance, previously known as Thirumeni Finance Private Limited, is a non-banking financial company (NBFC) that provides credit facilities and financial services to educational institutions, including schools, colleges, tutorial centres, vocational training institutes, and others in the education sector.
In FY26, Varthana Finance reported a turnover of ₹398.31 crore, a profit after tax of ₹18.65 crore, and a net worth of ₹574.23 crore.
The acquisition will be executed through cash consideration, with the completion of the transaction expected within nine months following the execution of the SPA, pending regulatory approvals and other prerequisite conditions.
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According to TVS Holdings, this acquisition aims to enhance the group’s footprint in the financial services landscape by integrating Varthana’s education finance operations into its lending platform.
The company clarified that this transaction is not a related-party transaction, and neither the promoters, promoter group, nor group companies have any stake in the target company.
Sudarshan Venu, Chairman of TVS Motor Company, stated, “India’s financial services sector continues to present substantial long-term growth opportunities, bolstered by rising formalisation, improved credit access, and a growing demand for specialized lending solutions. As we continue to develop our financial services platform, we are dedicated to supporting high-quality institutions that fulfill critical customer needs across various segments.”
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Varthana has established a unique franchise within the education-finance ecosystem, showcasing deep expertise in a specialized lending segment and earning a strong reputation among the institutions it serves. The proposed acquisition will broaden our involvement in secured and longer-tenure lending while enhancing the Group’s existing advantages.”
Steve Hardgrave, Whole-time Director and Executive Vice Chairman of Varthana, commented, “We are eager to collaborate with TVS as we continue to support private schools across the country.
The TVS legacy of trust that has empowered millions of customers in India aligns closely with Varthana’s mission and values. TVS’s deep roots, extensive resources, and operational excellence will bolster our platform, extend our reach, and facilitate Varthana’s next growth phase.”
Shares of TVS Holdings Ltd closed at ₹14,019.95, an increase of ₹6.30, or 0.045%, on the BSE.
