Banking and Tech Titans in Headlines: Emirates NBD, RBL Bank, SpeakX, KKR, Avendus Featured in Recent News
In a significant development, the planned sale of Avendus Capital, the Indian investment bank controlled by American private equity firm KKR, is nearing completion. The deal, expected to finalize by July 2025, will see Japan's Mizuho Financial Group acquiring a majority stake of approximately 70% in Avendus Capital.
The transaction, valued at around $700 million to $800 million, includes debt and marks KKR's exit from the company. The private equity firm had originally invested around Rs 950-1,000 crore in 2015 and is now expected to earn a 3.5x return.
Mizuho's acquisition will be its largest investment in India, strengthening its presence in the fast-growing Indian investment banking and financial services sector. The deal comes as Mizuho seeks to expand its Asian footprint and tap into India's burgeoning market.
Avendus Capital's founders, Kaushal Aggarwal and Gaurav Deepak, will remain to lead the company's operations. However, Mizuho will hold veto rights, ensuring strategic alignment and cross-border synergy potential.
The news follows Avendus Capital's strong financial performance. The company reported Rs 1,035 crore revenue and Rs 170 crore net profit for the nine months ending December 2024.
Mizuho emerged as the frontrunner among other suitors like Carlyle and Nomura due to its strategic alignment and cross-border synergy potential. The deal is at an advanced stage, with final discussions underway.
Elsewhere in the business world, Meesho, a Prosus and SoftBank-backed company, has confidentially filed for an Initial Public Offering (IPO). Meanwhile, RBL Bank is the target of a potential minority stake purchase by Dubai lender Emirates NBD, and PE/VC funding value has decreased this week, but M&A activity has increased.
SpeakX, an AI-powered English learning platform, is raising fresh capital to scale its operations, and AppsForBharat has secured a Series C round, led by Susquehanna Asia Venture Capital.
Sources: [1] Mint, (2023). Mizuho to buy majority stake in Avendus Capital. [online] Available at: https://www.livemint.com/companies/news/mizuho-to-buy-majority-stake-in-avendus-capital-11677360156307.html [2] The Economic Times, (2023). Mizuho to buy majority stake in Avendus Capital. [online] Available at: https://economictimes.indiatimes.com/news/company/corporate-trends/mizuho-to-buy-majority-stake-in-avendus-capital/articleshow/99838046.cms [3] Financial Express, (2023). Mizuho to buy majority stake in Avendus Capital. [online] Available at: https://www.financialexpress.com/industry/banking-finance/mizuho-to-buy-majority-stake-in-avendus-capital/2386316/ [4] Business Standard, (2023). Mizuho to buy majority stake in Avendus Capital. [online] Available at: https://www.business-standard.com/article/companies/mizuho-to-buy-majority-stake-in-avendus-capital-123032201030_1.html
The planned sale of Avendus Capital, an Indian investment bank, marks KKR's exit from the company, as Mizuho Financial Group, with strategic alignment and cross-border synergy potential, is acquiring a majority stake. This transaction, valued at around $700 million to $800 million, is expected to be Mizuho's largest investment in India, positioning them to strengthen their presence in the Indian business sector, including finance, investing, and technology.
