Switzerland-headquartered private equity firm Partners Group has acquired a majority stake in Infinity Fincorp, a Mumbai-based non-banking financial company (NBFC) focused on MSMEs, by leading a $230 million (INR 1,950 crore) funding round. The deal includes both primary infusion of $70 million (INR 600 crore) and a substantial secondary transaction, through which Indium IV (Mauritius) Holdings Limited exited its stake. Existing investor Jungle Ventures also participated in the round.
Founded in 2016 by Shrikant Ravalkar, Infinity Fincorp has built a niche in the MSME lending space, offering loans primarily against property as collateral. After obtaining its NBFC license from the Reserve Bank of India (RBI) in 2017, the company has expanded its presence across seven Indian states: Maharashtra, Gujarat, Madhya Pradesh, Rajasthan, Telangana, Andhra Pradesh, and Tamil Nadu. It claims a customer base of over 30,000, serving small business owners in sectors such as agriculture, trading, and manufacturing.
The capital infusion will be utilised to scale Infinity’s branch network, invest in its technology stack, and enhance customer onboarding and experience. This follows the company’s $40 million Series A round earlier this year, which saw participation from Beams Fintech Fund.
Vageesh Gupta, Managing Director of Private Equity at Partners Group, emphasized the growth potential in the MSME sector: “The MSME segment contributes a significant share of national GDP, and we expect demand for credit to continue rising. We believe non-bank lenders like Infinity, with their specialised operations, are well-positioned to deliver tailored financial solutions to this segment.”
This investment also comes shortly after Partners Group’s exit from Aavas Financiers, a housing finance company in India, by selling its stake to CVC Capital Partners.
India’s MSME lending sector continues to attract strong investor interest despite regulatory and operational challenges. According to an RBI expert committee report (2019), the estimated credit gap in the MSME sector ranges between INR 20–25 lakh crore, presenting a vast opportunity for NBFCs and fintech lenders alike. The RBI’s recent approval for Temasek-owned Fullerton Financial Holdings’ acquisition of a majority stake in Lendingkart underscores this momentum.
