The subsidiary of investment bank Ambit Group called Ambit Finvest has reportedly acquired Finmax Credit & Finance, a unit of fintech firm Finmax that finances small and medium enterprises.
The details regarding the finances has not been disclosed yet. This acquisition is expected to give a significant direction and goal to Ambit Finvest’s strategy to diversify its asset base and create granularity in its lending portfolio.
With the acquisition of an SME-focussed lending business, the company is looking to see its Rs 400 crore worth loan book get a strong boost. This deal will take the company’s asset base to Rs 600 crore.
According to the agreement, Finmax’s team of 140 employees along with founder Sanjay Agarwal will join Ambit Finvest. After the implementation of the deal, Ambit Finvest’s wholesale lending or structured finance business will be managed by Vikrant Narang, and on the other hand, the retail or SME business will be looked after by Sanjay Agarwal.
Both Narang and Agarwal will report to executive chairman of Ambit Finvest Sanjay Sakhuja. Finmax was founded in 2016 and the primary motive of the company is to offer structured and unstructured loans to SMEs across industries.
“We have ambitious plans for our lending business and in particular would like to capitalise on the highly attractive growth potential in the SME space. I am confident that the Ambit Finvest team … will enable us to create a world class lending institution,” said Ashok Wadhwa, group chief executive of Ambit.
Finmax has its presence across Maharashtra, Delhi-NCR, Gujarat, Rajasthan, Madhya Pradesh and Punjab with a loan book of over Rs 200 crore. In case of Ambit Finvest, the company has built a structured finance business in India, providing customised wholesale lending solutions to customers over the past 18 months.