Colombo [Sri Lanka], Aug 20 (ANI): MahindraMahindra Financial Services Ltd said on Tuesday it has entered into a joint venture with Ideal Finance Ltd, a fully-owned subsidiary of the leading Sri Lankan conglomerate Ideal Group.
Mahindra Finance will invest Rs (Sri Lankan) two billion until March 2021 for up to 58.2 per cent stake in Ideal Finance.
The joint venture will capitalise on Mahindra Finance's 25-year expertise in the financial services domain and Ideal Finance's domestic market knowledge to build a leading financial services business in Sri Lanka.
Mahindra Finance, India's leading NBFC focused on rural and semi-urban markets, 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 and its vibrant financial services market, emerged as the first choice.
"We believe that the Sri Lankan market holds great potential for growth," said Ramesh Iyer, Vice-Chairman and Managing Director of Mahindra Finance. "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," he said in a statement.
Nalin Welgama, Chairman of Ideal Finance Ltd, said, "At a time where non-banking financial institutions are pressured by low economic growth and flagging vehicle sales, I welcome the timely entry of Mahindra Finance to Sri Lanka. They bring with them the most invaluable sector exposure, vision and lifeblood in terms of capital infusion to Ideal Finance."Mahindra Finance has over 62 lakh customers in over 3.7 lakh villages in India and has assets under management of over Rs 70,000 crore. (ANI)