Non-banking lender Credit Saison India is raising Rs 1,200 crore ($145 million) from Japan’s Mizuho Bank Ltd, the retail and corporate banking unit of Mizuho Financial Group, in its first external round of funding.
Mizuho Bank will acquire a 15% stake in the company, while Japanese conglomerate Credit Saison Group retains the majority stake, they said in a statement.
Credit Saison India is the Indian arm of Saison International, the global headquarters of Japanese credit card issuer Credit Saison.
“The investment by Mizuho Bank, one of Japan’s banking powerhouses, is a significant endorsement for the lending business which Saison International has grown in the global arena, beyond Japan,” said Kosuke Mori, chief executive and director of Saison International. “The investment from Mizuho comes at an opportune time as we undertake ambitious growth plans to capitalize on our success to deepen our lending franchise in the market.”
The deal comes amid an increased interest of Japanese firms in India’s financial services sector. MUFG, Japan's largest bank, picked up stakes in DMI Finance, InsuranceDekho, Lentra and KreditBee over the last two years. Last month, SMFG India Credit (formerly Fullerton India Credit) raised Rs 600 crore from Japan’s Sumitomo Mitsui Banking Corporation through external commercial borrowing.
“Over the last few years, we have been able to build out our robust lending franchise and a diverse asset portfolio through our multi-product, multi-vertical strategy,” said Presha Paragash, CEO and whole-time director, Credit Saison India.
“This investment by Mizuho into Credit Saison India marks the start of a new collaborative chapter as we build on our strong foundations and execute on our growth plans to evolve into a resilient lending leader in India,” she said.
Credit Saison India, which received its non-banking banking company licence in September 2019, focuses on individuals and small and medium enterprises in the country. The company has grown its portfolio to about 1.2 million active loans and assets under management of about Rs 10,000 crore.