Axis Finance Secures ₹750 Cr from Kedaara Capital

Axis Finance has successfully raised ₹750 crore from private equity firm Kedaara Capital, acquiring a 5.08% stake. This primary capital infusion, which values the shadow lender at ₹14,764 crore, represents its first-ever funding from an external investor. The transaction is subject to necessary approvals and marks a significant step in bolstering the company's financial foundation.

This recent funding follows an earlier ₹1,500 crore rights issue from its parent, Axis Bank, bringing the total raised capital to ₹2,250 crore. This combined infusion enhances Axis Finance's Tier 1 capital and capital adequacy ratio (CRAR), currently at 13.82%, preparing it for future growth and deeper credit penetration in India's competitive market.

The capital infusion also establishes a crucial valuation benchmark for potential future fundraising and an eventual initial public offering. Axis Finance is expected to become an upper-layer Non-Banking Financial Company (NBFC) within the next two to three years, a status that mandates listing according to RBI regulations. The company's net profit for fiscal 2026 saw a 19% year-on-year increase to ₹806 crore.