TVS Holdings Ltd announced on Wednesday (July 15) that its subsidiary, Home Credit India Finance Private Limited, has executed a Share Purchase Agreement to acquire 100% of Varthana Finance Private Limited for ₹967 crore in a cash deal. According to the latest regulatory filing, the transaction involves acquiring 100 per cent of the issued, subscribed and paid-up share capital of Varthana Finance, formerly known as Thirumeni Finance Private Limited. The acquisition is subject to approvals from the Reserve Bank of India (RBI) and other statutory and regulatory authorities, as well as the fulfilment of conditions outlined in the agreement. The all-cash transaction will allow TVS Holdings to expand its presence into the secured and longer-tenure education-finance segment, with the deal expected to close within nine months from the execution of the SPA. Following completion, Varthana Finance will become a wholly owned subsidiary of Home Credit India and an indirect wholly owned subsidiary of TVS Holdings.
As reported by CNBC TV18 and The Economic Times, Varthana Finance reported strong financial metrics for FY26, with turnover of ₹398.31 crore, profit after tax of ₹18.65 crore, and net worth of ₹574.23 crore. The company, formerly known as Thirumeni Finance Private Limited, operates as a non-banking financial company (NBFC) registered with the RBI, specializing in providing financing to schools, colleges, educational institutions, tutorial centres, vocational training institutes, and other organisations operating in the education sector. Historical financial data shows consistent growth with turnover increasing from ₹284.27 crore in FY2023-2024 to ₹325.69 crore in FY2024-2025 and ₹398.31 crore in FY2025-2026. Upon completion, Varthana Finance will become a wholly owned subsidiary of Home Credit India and a step-down wholly owned subsidiary of TVS Holdings.
According to The Economic Times, the acquisition complements the group's existing consumer, retail and commercial lending businesses under TVS Credit Services and Home Credit India, while marking its entry into education-focused lending. By adding Varthana's specialised education finance franchise, TVS Venu will expand its presence in secured, longer-tenure lending and diversify its overall loan portfolio. The group said the acquisition aligns with its long-term strategy of building and scaling high-quality financial services businesses that cater to India's evolving credit needs across customer segments. It also expects to leverage synergies across distribution, technology, operations and risk management through the wider TVS Venu ecosystem. Founded in 2013, Varthana has served more than 13,000 schools across India through education-focused financing, with many underserved schools continuing to require capital to expand infrastructure and improve access to quality education.
As reported by CNBC TV18 and The Economic Times, Sudarshan Venu, Chairman of TVS Motor Company, highlighted India's financial services sector opportunities driven by rising formalisation and expanding credit access. In the latest statement, Venu emphasized that "Varthana has built a differentiated franchise within the education-finance ecosystem, with deep expertise in a specialised lending segment and a strong reputation among the institutions it serves." He added that "the proposed acquisition will broaden our participation in secured and longer-tenure lending while complementing the group's existing strengths." Steve Hardgrave, Whole-time Director and Executive Vice Chairman of Varthana, expressed enthusiasm about joining forces with TVS to support private schools throughout the country, citing the alignment between TVS's legacy of trust and Varthana's mission. Hardgrave noted that "TVS's deep roots, extensive resources and operational excellence will help strengthen our platform, expand our reach and support the next phase of Varthana's growth."
According to ET Now, shares of TVS Holdings Ltd ended at ₹13,977.60, down ₹36.05, or 0.26%, on the BSE following the announcement. The proposed acquisition is subject to approvals from the Reserve Bank of India (RBI) and other statutory and regulatory authorities, along with the fulfilment of conditions under the SPA. The transaction is expected to close within nine months from the execution of the agreement, pending the fulfilment of customary closing conditions and regulatory clearances. With the addition of Varthana's specialised education-finance franchise to its growing financial services platform, TVS Venu Group will expand its presence into a complementary secured and longer-tenure lending segment, strengthening its position in India's financial services sector.
