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Mahindra & Mahindra Financial Services Ltd has entered into a joint venture with Sri Lanka's Ideal Finance Ltd. Mahindra Finance will invest LKR 2 billion until March 2021 for up to 58.2 per cent stake in Ideal Finance.
Mahindra Finance has been looking at expanding its market overseas as part of its global growth strategy. "Sri Lanka, with its cultural and geographical similarity to India and its vibrant financial services market, emerged as the first choice. With this joint venture Mahindra Finance aims to replicate in Sri Lanka, its successful, socially inclusive business model," said a press statement.
Mahindra Finance manages an AUM of over $10 billion.
Ideal Finance Ltd (IFL) is a non-banking financial Institution registered with the Central Bank of Sri Lanka. It commenced operations in March 2012. Its lending portfolio consists of commercial trucks, motor cars, three-wheelers, two-wheelers, gold loans and personal loans. IFL has an asset base of LKR 4.4 billion and an equity base of LKR 1.1 billion.
Ramesh Iyer, Vice-Chairman & Managing Director, Mahindra Finance, said: “We believe that the Sri Lankan market holds great potential for growth. We see a strong, long-term growth opportunity in this market and are committed to bringing in the required capital and expertise to fuel this growth.”
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