Choice Finserv expands through NBFC acquisitions
MUMBAI, INDIA — Choice Finserv Private Limited has announced an expansion of its operations through the acquisition of two Jaipur-based lending businesses, marking a transformative moment in India’s financial services sector.
The NBFC arm of Choice International Limited is set to acquire the retail lending portfolios of Paisabuddy Finance Private Limited and Sureworth Financial Services Private Limited. This move will boost Choice Finserv’s Assets Under Management (AUM) from ₹457.68 crore ($54 million) to ₹801 crore ($95 million), representing a 75% increase.
“We are excited to join hands with these two organizations. The integration of their retail lending business with our existing platform will not only expand our market reach but also streamline our operations, driving greater efficiency and improved service delivery,” added Vijendra Shekhawat, CEO of Choice Finserv Pvt Ltd.
Operational expansion
The acquisition brings substantial operational growth, with Choice Finserv’s branch network expanding from 71 to 168 locations across six states – Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh, and Delhi NCR. The company’s workforce will more than double, growing from 536 to 1,180 employees.
🚀 We’re Expanding Financial Access! 🚀
We’re excited to announce a major step forward at Choice Finserv! Our acquisition of retail lending business of Paisa Buddy Finance Pvt Ltd(NBFC) and Sureworth Financial Services Pvt Ltd(Loan distributor) marks a new era in our mission to… pic.twitter.com/hLmrfUrXRz
— Choice (@ChoiceHQ_Social) October 22, 2024
Focus on sustainable finance
Mr. Arun Poddar, Group CEO of Choice International Limited, emphasized the strategic importance of the acquisition: “These additions represent a pivotal moment in our journey to deepen financial inclusion and provide comprehensive solutions to MSMEs and retail customers,” said Arun Poddar, Group CEO, Choice International Limited.
“In one fell swoop, we will be enhancing our AUM by 75% and by integrating their operations with ours, we are expanding our geographical presence and solidifying our focus on bridging the credit gap for underserved communities.”
The deal particularly strengthens Choice Finserv’s position in MSME lending and green finance initiatives, including funding for rooftop solar projects and electric vehicles.
Paisabuddy Finance will contribute an AUM of ₹278.54 crore ($33 million), while Sureworth Financial Services will add ₹65.38 crore ($7.8 million) to the portfolio.
Choice Finserv, operating as a tech-driven platform under Choice International Limited, leverages advanced technologies such as AI and machine learning to address the credit challenges faced by small businesses across India. The acquisition, which will be executed as a slump sale transaction, remains subject to regulatory approvals.