Bain’s India Lender Aims to Double Portfolio Before IPO

(Bloomberg) Tyger Capital Pvt Ltd., the shadow lender acquired by Bain Capital from the Adani Group, is working to double its loan portfolio as it plans to list on India’s stock exchanges next fiscal year.

Tyger intends to expand its loan book to 100 billion rupees ($1.2 billion) across its small business, farm equipment, and commercial vehicle sectors, according to CEO Gaurav Gupta in a recent Mumbai interview.

“There is ample opportunity to adjust our loan sizes across all segments, and we will delve deeper into each with adjacent strategies,” Gupta stated.

Bain Capital purchased a majority stake in the lender from billionaire Gautam Adani’s family last July, injecting about 10 billion rupees to support growth.

India’s NBFCs have expanded by targeting clients underserved by traditional banks. The sector’s loans grew by approximately 17% in the year ending March 2024 to 46.6 trillion rupees, according to ICRA ratings, part of Moody’s Corp.

Tyger’s growth strategy emerges amid a tough period for shadow lenders. The Reserve Bank of India has advised the financial sector to reduce unsecured personal lending and increased risk weightings for bank loans to shadow lenders. Consequently, many are seeking new capital sources.

This includes offshore bonds, with Tyger potentially exploring a $20 million to $30 million sale later in the year, Gupta mentioned.

“Increased regulatory oversight benefits the sector,” Gupta noted, emphasizing compliance. The lender has adjusted its underwriting to account for the rise in personal and consumer loans among its clients.

Currently, Tyger has 175 branches in semi-urban and rural areas and plans to open another 50 to 60 outlets, adding nearly 700 employees to its current workforce of 3,000, Gupta added.

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