Poonawalla Fincorp Limited, (formerly known as Magma Fincorp) is a Cyrus S. Poonawalla group Non-Banking Finance Company (NBFC) that focuses on consumer and MSME financing. The company operates more than 279 branches in 21 states, as of 2022.

History

1988–2020: As Magma Fincorp

The company was incorporated in 1988 by Mayank Poddar and Sanjay Chamria as Magma Leasing Limited. The company commenced operation in 1989. In 1996, the company entered retail financing business for vehicles and construction equipment. In 2000, with the acquisition of Consortium Finance Ltd, the company expanded its network across Northern India. In 2007, Shrachi Infrastructure Finance merged with the company increasing the company's footprint in southern and western India. In the same year, the company formed a joint venture with International Tractors Limited (ITL) to enter tractor financing business. In 2008, the company re-branded and renamed itself as Magma Fincorp Limited. In 2009, the company inked a

joint venture A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and economic risk, risks, and shared governance. Companies typically pursue joint ventures for one of four rea ...

with German insurer HDI Global to enter general insurance business. The company commenced operations in 2012. The same year, the company picked up 7% stake in the newly formed Experian Credit Information Company of India Pvt Ltd, the Indian arm of the global credit information services company. In 2011, global PE firm

Kohlberg Kravis Roberts KKR & Co. Inc., also known as Kohlberg Kravis Roberts & Co., is an American global investment company that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its strate ...

and

International Finance Corporation The International Finance Corporation (IFC) is an international financial institution that offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries. The IFC is a member of ...

, an arm of the

World Bank Group The World Bank Group (WBG) is a family of five international organizations that make leveraged loans to developing countries. It is the largest and best-known development bank in the world and an observer at the United Nations Development Gr ...

, invested about $100 million in the company. In 2012, the company acquired GE Money Housing Finance and home equity loan portfolio of GE Money Financial Services from

GE Capital GE Capital is the financial services division of General Electric. The company currently only runs one division, GE Energy Financial Services. It had provided additional services in the past; however, those units were sold between 2013 and 2018. ...

India. In March 2015, Magma Fincorp received Rs. 500 Cr investment from KKR, Indium V and LeapFrog Investments In 2016, Mayank Poddar stepped down as the chairman. In April 2018, Magma Fincorp raised Rs. 500 Cr investment through QIP

2021–present: Under Poonawalla Group

The company announced a major financial investment by Rising Sun Holdings, an Adar Poonawalla controlled company in February 2021. Magma HDI announced capital infusion in March 2021 by ICICI Ventures, Cyza Chem and Morgan Stanley. Subsequent to the investment by Rising Sun Holdings, the name of the company was changed from Magma Fincorp to Poonawalla Fincorp on 22 July 2021. In December 2022, Poonawalla Fincorp announced that it will sell its subsidiary Poonawalla Housing Finance to Perseus SG, a TPG Global entity, for .

References

{{Reflist, 2 Companies based in Pune 1988 establishments in West Bengal Financial services companies established in 1988 Indian companies established in 1988