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Why PE investors are eyeing a bigger pie of India’s financial services sector

VCCircle · 7m ago

Medial

Private equity investors, both international and domestic, are showing strong interest in India's financial services sector. Several major investments have taken place recently, with financial sponsors acquiring companies such as Shriram Housing Finance and Svatantra Microfin. Factors driving this surge in investments include the pursuit of scale, proven financial returns, synergies, and a focus on financial inclusion. The Indian government has also taken steps to liberalize investment policies in the sector, further attracting private equity funds. However, investors need to consider factors such as funding mix, exposure norms, and regulatory approvals before making investments in the sector.