New Delhi, July 21 -- Cholamandalam Investment and Finance Company has tapped an offshore investor for debt capital.
The non-bank lender will utilise the proceeds to provide commercial vehicle finance loans to micro, small, and medium enterprises (MSMEs), including self-employed individuals. The capital will also be used to provide financing for tractors and vehicles used for transporting agricultural and farm-related products.
Cholamandalam Investment has secured the investment from the International Finance Corporation (IFC), the private sector investment arm of the World Bank group. IFC will invest up to Rs 1,425 crore (around $150 million) in securitized assets of the company, according to a document accessed by VCCircle.
"The investment is expected to promote greater competitiveness via demonstration and replication channels by showcasing the potential and viability of scaling up financing to underserved MSMEs and self-employed borrowers, including in small towns and rural areas," the document said.
Chennai-headquartered Cholamandalam Investment serves more than 5 million customers through 1,761 branches across India. The company is part of the Murugappa Group, which operates across agriculture, engineering, and financial services.
Apart from MSME loans, the non-bank lender also provides loans against property, affordable housing loans, and consumer and personal loans, primarily in semi-urban and rural regions of India
For FY26, the company's net profit rose 23% year-on-year to Rs 5,220 crore. Assets under management rose 21% to Rs 2.4 trillion as of March 31, 2026. Gross non-performing asset ratio rose to 4.4% from 4% a year ago.
Cholamandalam Invest is listed on the BSE and the National Stock Exchange of India. Around 49.25% of the company's shares are held by the promoter and promoter group, 25.4% are held by foreign institutional investors, 20.50% are held by domestic institutional investors and 4.84% are with public shareholders.
Published by HT Digital Content Services with permission from VC Circle.