Credit Saison India (CS India) has raised Rs 540 crore (around $67 million) in two tranches from Japan-based parent Credit Saison Company, bringing the total equity infusion in the company to from parent and its affiliates Rs 1,600 crore.
In 2019, CS India obtained an NBFC licence in India and subsequently established its wholesale lending and co-lending/fintech partnership divisions. The firm collaborates with other NBFCs, fintech firms and other modern lending companies to develop its retail portfolio, with a focus on the consumer and SME sectors.
The company has expanded into lending directly through 20 branches and digitally via its consumer loan mobile application named ‘Privo’. CS India has an AUM (assets under management) of Rs 5,000 crore.
“As a neo-lending company, CS India prides is a technology-focused NBFC that offers solutions to meet various credit needs of consumers, SMEs, fintech companies and NBFCs. We are poised to grow to a $1 billion in AUM within the next 12 months. We were profitable within the first few months of starting lending and continue to regard profitability as one of our most important metrics,” said Presha Paragash, chief executive officer and director, CS India.
Commenting on the development, Saison International's global business head and CEO Kosuke Mori said, "Currently Credit Saison's global business makes close to 10% of the overall group’s (Credit Saison Co) profits. Saison International, through its global business division, intends to triple this and we see India playing a crucial role in this.”
Mori said the capital infusion reflects the continued confidence the company has in the Indian business. “We want to enable the growth of accessible credit here in India, and we believe the $1 billion AUM target is only a stepping stone for the India business given the huge underserved market for credit in the country,” said Mori.
Credit Saison, a publicly traded company listed on the Tokyo Stock Exchange, holds the distinction of being the third-largest issuer of credit cards in Japan. Founded in 1951, it consists of over 4,300 employees and has a customer base of over 36 million. It currently operates in six existing markets in Asia and is exploring opportunities to expand beyond Asia into new geographies.
The company has evolved from a credit-card issuer to a diversified financial services provider with a presence across five segments: leasing, payments, finance, real estate, and entertainment.