Credit Saison Company, Japan's leading financial services player, invested Rs 540 crore in its wholly owned local subsidiary, Credit Saison India, signalling its intention to increase exposure in the world's fastest-expanding major economy.

The Japanese parent and its affiliates have invested a total of Rs 1,600 crore in Credit Saison India, which has grown its asset portfolio to Rs 5,000 crore in four years.

“The parent company is very bullish on India,” said Presha Paragash, chief executive of the Indian unit.

“We are poised to grow to a $1 billion AUM (assets under management) within the next 12 months. We have been profitable within the first few months of starting lending and continue to regard profitability as one of our most important metrics as we look towards building a resilient business,” she said.

Saison International, which oversees Credit Sainson's global business division, is responsible for the latest round of equity infusion. The investment was made in two instalments, with the first instalment of Rs 350 crore arriving in September 2022 and the second instalment of Rs 190 crore arriving in the first week of January.

“This capital infusion reflects the continued confidence that we have in the India business,” said Kosuke Mori, global business head and chief executive officer, Saison International.

“We want to enable 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,” he said.

Credit Saison India grows its business through partnerships, initially focusing on wholesale lending and tech-integrated partnerships with leading non-bank lenders and Fintechs. It recently began direct lending to small and medium-sized businesses as well as individual borrowers.

It also received debt financing from approximately 20 lenders, including big names like State Banks of India, Canara Bank, Bank of Baroda, Punjab National Bank, and Axis Bank.

“As a neo-lending conglomerate, Credit Saison India prides itself as a technology-focused NBFC which offers bespoke solutions to meet the various credit needs of consumers, SMEs, FinTechs and NBFCs,” Paragash said.