Poonawalla Fincorp Limited (formerly Magma Fincorp) is an Indian non-banking financial company (NBFC) engaged in consumer and MSME financing. It is headquartered in Pune and is part of the Cyrus Poonawalla Group.
History
1988–2020: As Magma Fincorp
The company was incorporated in 1988 by Mayank Poddar and Sanjay Chamria as Magma Leasing Limited and commenced operations in 1989.[4] In 1996, the company entered the 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 its footprint and status in southern and western India.[5] In the same year, the company formed a joint venture with International Tractors Limited (ITL) to enter the tractor financing business.[6] In 2008, the company rebranded and renamed itself Magma Fincorp Limited.[7]
In 2009, the company formed a joint venture with German insurer HDI Global to enter the general insurance business.[8] Operations commenced in 2012. The same year, the company acquired a 7% stake in 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 and International Finance Corporation, an arm of the World Bank Group, invested about $100 million in the company.[9] In 2012, the company acquired GE Money Housing Finance and the home equity loan portfolio of GE Money Financial Services from GE Capital India.[10]
In March 2015, Magma Fincorp received a Rs. 500 Cr investment from KKR, Indium V, and LeapFrog Investments.[11]
In 2016, Mayank Poddar stepped down as chairman.[12] In April 2018, Magma Fincorp raised Rs. 500 Cr through a QIP.[13]
2021–present: Under Poonawalla Group
The company announced a significant financial investment by Rising Sun Holdings, a company controlled by Adar Poonawalla, in February 2021. In March 2021, Magma HDI announced a capital infusion by ICICI Ventures, Cyza Chem, and Morgan Stanley. Following the investment by Rising Sun Holdings, the company changed its name from Magma Fincorp to Poonawalla Fincorp on 22 July 2021.[14]
In December 2022, Poonawalla Fincorp announced the sale of its subsidiary, Poonawalla Housing Finance, to Perseus SG, an entity of TPG Global, for ₹3,900 crore (US$470 million).[15]
