In a significant move aimed at expanding its footprint in the Indian retail lending space, Choice Finserv, the NBFC arm of Choice International Limited, has announced the acquisition of the retail lending businesses of Paisabuddy Finance Private Limited and Sureworth Financial Services Private Limited. This strategic acquisition is expected to increase Choice Finserv’s assets under management (AUM) by a staggering 75%, taking it from ₹3,457.68 crore to ₹6,801 crore, including off-book AUM.

The acquisition, which will take place through a slump sale transaction, is subject to necessary regulatory approvals. By acquiring the loan portfolios, operations, team, and infrastructure of these Jaipur-headquartered companies, Choice Finserv is not only expanding its presence in the MSME lending sector but also strengthening its position in green finance initiatives.

Expanded Portfolio and MSME Lending Focus

Paisabuddy Finance, a well-established MSME lender operating in Rajasthan, Gujarat, and Madhya Pradesh, adds ₹278.54 crore in AUM to Choice Finserv's portfolio. Sureworth Financial Services, which specializes in MSME loans and Affordable Housing Loans, contributes another ₹65.38 crore to the company's growing portfolio. This acquisition bolsters Choice Finserv's MSME lending focus, positioning it as a strong player in the market by addressing the credit needs of underserved communities.

Through this deal, Choice Finserv will expand its branch network from 71 to 168 locations across Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh, and Delhi NCR. Additionally, the workforce will increase significantly from 536 employees to 1,180 employees, enhancing operational capacity and service delivery.

Commitment to Green Finance and Sustainability

Choice Finserv has always been committed to promoting sustainable finance, and this acquisition provides a stronger platform to advance this agenda. With the additional resources from Paisabuddy Finance and Sureworth Financial Services, Choice Finserv plans to further invest in green finance initiatives, such as funding for rooftop solar projects and electric vehicles. These efforts align with global sustainability goals, ensuring that the company's growth is also environmentally conscious.

This expansion into green finance also gives Choice Finserv a competitive edge, positioning it to meet the growing demand for eco-friendly funding solutions in India.

Strategic Growth and Financial Inclusion

Speaking on the acquisition, Mr. Arun Poddar, Group CEO of Choice International Limited, stated, "We are delighted to welcome the retail lending businesses of Paisabuddy Finance and Sureworth Financial Services into the Choice family. This acquisition is a pivotal moment in our journey to deepen financial inclusion and provide comprehensive solutions to MSMEs and retail customers." By integrating the operations of these companies, Choice Finserv is expanding its geographical reach and strengthening its focus on bridging the credit gap for underserved markets.

Mr. Vijendra Shekhawat, CEO of Choice Finserv Pvt Ltd, added, "The integration of these retail lending businesses will not only expand our market reach but also streamline our operations, driving greater efficiency and improved service delivery." With the added capacity, Choice Finserv is now better equipped to offer a range of MSME and retail loan products, positioning itself as a leader in India's financial inclusion landscape.

Branch and Workforce Expansion

The acquisition also brings an immediate boost to Choice Finserv’s infrastructure. The expanded network of branches—spanning six states—will enable Choice Finserv to cater to a broader market. With 168 locations, the company can now offer more localized and accessible financial services, especially to small and medium enterprises that often struggle to find formal credit sources.

This strategic expansion in both geographical footprint and human resources strengthens the company’s MSME-focused offerings, helping it cater to the rising demand for retail loans and MSME financing. The growth in employee strength to 1,180 will also allow for enhanced customer service, quicker processing of loans, and more personalized financial solutions for clients.

Integration and Efficiency

Integrating the operations, teams, and infrastructure of Paisabuddy Finance and Sureworth Financial Services into Choice Finserv is expected to result in increased operational efficiencies. The synergy between the companies will create a streamlined business that can serve clients more effectively while optimizing resource use.

The slump sale transaction will facilitate a smooth transition, ensuring that the companies' combined expertise and assets are leveraged for maximum benefit. The expanded team will work to ensure that Choice Finserv's customers, both existing and new, continue to receive top-tier financial services, with a focus on delivering innovative solutions for the MSME sector.

Future Outlook

Looking ahead, Choice Finserv is positioned for robust growth as it integrates these two companies and expands its presence in the retail lending market. The company’s ongoing focus on green finance and financial inclusion will play a crucial role in its long-term strategy. By continuing to address the needs of underserved communities and contributing to sustainable development, Choice Finserv is set to become a key player in India’s evolving financial landscape.

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