Mizuho to Acquire 70% Stake in Avendus Capital in $700M Deal

Japanese financial group Mizuho is set to acquire a 70% stake in Indian investment bank Avendus Capital in a deal valued at around $700 million (Rs 6,000 crore). The acquisition includes a full exit by KKR, which currently holds 60%, and co-founder Ranu Vohra, who will also sell his stake.

The deal, expected to be Mizuho’s largest investment in India, follows months of negotiations. Co-founders Gaurav Deepak and  Kaushal Aggarwal will continue leading operations, while Mizuho is expected to hold veto rights as part of the agreement.

Avendus Capital, established in 1999, has evolved into a full-service financial firm with a presence in wealth management, asset management, institutional equities, credit solutions, and investment banking. In 2022, the company further expanded its capital markets capabilities through the acquisition of Spark Capital.

With offices in 10 Indian cities and an overseas presence in the U.S. and Singapore, Avendus reported revenue of ₹1,035 crore and net profit of ₹170 crore for the nine months ending December 2024, reflecting a profit margin of over 16%.

KKR had acquired a 60% stake in Avendus for about ₹950 crore in 2015 and is now exiting with an estimated 3.5x return. Alongside KKR, co-founder Ranu Vohra and some early investors are also exiting as part of the transaction. Co-founders Kaushal Aggarwal and Gaurav Deepak will continue leading the business, while Mizuho will gain veto rights and majority control.

The acquisition attracted interest from multiple global investors, including Carlyle and Nomura, but Mizuho reportedly secured the deal due to stronger strategic alignment and opportunities for cross-border collaboration. Rothschild & Co. advised the sellers in the transaction. Mizuho CEO Masahiro Kihara is expected to visit India soon for an official announcement.

This deal also highlights the rising interest of Japanese firms in India’s financial services market. Earlier, SMBC acquired a 20% stake in Yes Bank, signaling growing confidence in India’s regulated yet expanding financial ecosystem. With expectations of relaxed RBI norms for foreign ownership in financial institutions, players like Mizuho are positioning themselves to tap into India’s IPO and M&A opportunities.

Mizuho’s interest in India goes beyond the Avendus deal. The Japanese bank recently bought a 15% stake in Kisetsu Saison Finance and has already invested $500 million into its Indian operations. It currently operates five branches across the country, signaling its long-term commitment to the market.

To strengthen its local strategy, Mizuho has also appointed Sanjay Nayar, former India head of KKR, as an advisor. This move, along with its growing portfolio of investments, reflects a broader push by Japanese financial firms to tap into India’s expanding financial services sector. A formal announcement of the Avendus acquisition is expected later this week.