A non-banking financial corporation owned by the Adani Group called Adani Capital has entered into a binding deal for Bain Capital, a worldwide private investment firm, to purchase 90% of the company. According to the corporation, the deal will completely wipe out the private investments made by the Adani family in it. Gaurav Gupta will also continue to hold the positions of Managing Director and CEO. Adani Capital is now being led by Gaurav Gupta, a former investment banker for Lehman Brothers and Macquarie.
A brief about Gaurav Gupta will remain as MD when Bain Capital purchases a 90% interest in Adani Capital
In order to support the business’s ongoing growth, according to Bain Capital, it has also invested $120 million in primary capital. The investment company also stated that it is providing the company with a $50 million liquidity line in the form of non-convertible debentures.
According to Rishi Mandawat, a Partner at Bain Capital, “Gaurav and the team have built a scale lending business that supports entrepreneurialism and is attempting to solve the $300 billion+ unmet retail MSME credit demand in the country.” The business has solid financial foundations, an experienced team, and the capacity to develop into key industries including housing, agriculture, and underbanked rural areas.
In order to support and facilitate Adani Capital’s next phase of growth, Mandawat said, “We see compelling opportunities to partner with Gaurav and team by providing access to significant capital, strategic and operating resources, and deep experience partnering with financial services businesses in India and across the globe.”
Gautam Adani, the head of the Adani Group, claimed to have known Gaurav since they both worked in investment banking. “I supported him when he wanted to start his own business. He has made a significant contribution to the Adani Group in addition to developing a solid financial services company with a focus on the underserved in semi-urban and rural India. I am thrilled that a reputable investor like Bain is going in at this time since it will help the business multiply from here.
In October 2016, Gaurav Gupta joined the company. He remarked, “It has been an extraordinary six years; to have the capital, a strong brand, and, more importantly, the freedom to build a business is perhaps unprecedented – and for this, I thank Gautambhai for the opportunity and for his faith in me.”
According to Gupta, Adani Capital has always sought to be the most affordable and practical lender for its clients by utilizing technology. It also aims to promote microentrepreneurs and first-time homebuyers in the nation. “The team and I are thrilled to have a partner like Bain Capital on board who shares our objective of bringing accessible financing to our customer segment with a strong emphasis on customer literacy and education. We are now prepared to grow 4 times from here thanks to Bain investing INR 1,000 Cr in the company, he said.
In order to “democratize access to affordable, convenient lending solutions” and promote India’s upcoming MSMEs and entrepreneurs, Adani Capital was established in 2017.
