Non-banking finance company Sundaram Finance today stated that it has picked up a stake in GyanDhan as part of its plans to promote start-ups.
“The aim is to associate with firms where there is synergy with group strategy,” Sundaram Finance Managing Director T T Srinivasaraghavan said in a statement.
New Delhi-based GyanDhan is an online marketplace for students who seek education loans to pursue studies abroad.
The company has already helped over 250 students get education loans of around Rs 60 crore.
“Sundaram Finance would look at making investments as opportunities arise. The investments will be ‘minority stakes’ in early stage ventures with ticket size of $1 million or less while larger investments would be made wherever necessary,” the statement read.
“We are already engaged with multiple start-ups with various types of engagement models -- operational, finance and equity investments where it makes sense,” the company’s Deputy Managing Director Harsha Viji said.
“We will work only with companies where we can add value to their business,” he said.
“We are delighted that Sundaram Finance has shown confidence in us, and that will help us grow as a responsible financial services business,” GyanDhan Co-Founder Ankit Mehra said.
As of March 31, 2017, Sundaram Finance Ltd reported consolidated revenue of Rs 5,633 crore with profit of Rs 683 crore.