Bain Capital, a global private investment firm, on Sunday announced that it has entered into a definitive agreement to acquire 90 per cent of Adani Capital, a non-banking financial company of Adani Group. The transaction will buy out 100 per cent of the Adani family's private investments in the company, the firm said, adding that Gaurav Gupta will continue to serve as Managing Director and CEO. Gaurav Gupta, a former Lehman Brothers and Macquarie investment banker, is currently leading Adani Capital.
Bain Capital said it has also committed $120 million in primary capital to facilitate the company's ongoing growth. Further, the investment firm said it is also making available to the company a liquidity line of $50 million in the form of non-convertible debentures.
"Gaurav and the team have built a scale lending business that supports entrepreneurialism and is trying to solve the $300 billion+ unmet retail MSME credit demand in the country," said Rishi Mandawat, a Partner at Bain Capital. "The company has strong business fundamentals, an experienced team, with the ability to serve and expand to core segments like agriculture, housing, and to underbanked rural areas."
"We see compelling opportunities to partner with Gaurav and team to support and facilitate Adani Capital's next phase of growth by providing access to significant capital, strategic and operating resources, and deep experience partnering with financial services businesses in India and across the globe,” Mandawat said.
Adani Group chairman Gautam Adani said he has known Gaurav since his days as an investment banker. "He wanted to become an entrepreneur and I backed him. He has not only built a good financial services business with a focus on the underserved in semi-urban and rural India but has also valuably contributed to the Adani Group. I am very happy that a credible investor like Bain is stepping in now and this will help the business grow manyfold from here."
Gaurav Gupta, who joined the group in October 2016, said: "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."
Gupta said Adani Capital's aim has always been to support microentrepreneurs and first-time homeowners in the country and to be the most economical and convenient lender to its customers by leveraging technology. "The team and I are very pleased to welcome a partner like Bain Capital who shares our vision of making affordable finance available to our customer segment with a strong focus on customer literacy and education. With Bain committing INR 1,000 Cr of capital in the Company, we are now equipped to grow 4x from here," he said.
Adani Capital was founded in 2017 to "democratize access to affordable, convenient lending solutions" and support the next generation of MSMEs and entrepreneurs in India.