Mahindra & Mahindra Financial Services on Tuesday announced to acquire a 58.2% stake in Ideal Finance (IFL), a fully owned subsidiary of a Sri Lankan conglomerate, Ideal Group. Mahindra Finance will invest Rs 80 crore until March 2021 for the announced stake.
Mahindra Finance has been looking at expanding its market overseas as part of its global growth strategy. Sri Lanka, with its cultural and geographical similarity to India, emerged as the first choice. With this joint venture, Mahindra Finance aims to replicate in Sri Lanka its socially inclusive business model which is focused on the rural and semi-urban markets.
The joint venture will capitalise on Mahindra Finance’s expertise in financial services and Ideal Finance’s domestic market knowledge to build a market leading financial services business in Sri Lanka.
Ramesh Iyer, vice-chairman and managing director of Mahindra Finance, said, “We believe that the Sri Lankan market holds great potential for growth. Ideal Finance with its knowledge, highly experienced team and widespread network is the right partner to help us create a leading financial services company in Sri Lanka. We see a strong, long-term growth opportunity in this market and are committed to bringing in the required capital and expertise to fuel this growth.”
[“source=financialexpress”]