Mizuho Leasing enters into agreements to acquire 51% stake of Rent Alpha, a leading and diversified player in the Indian equipment leasing industry.
Mizuho Leasing will partner in the long-term strategy to build an even stronger and diversified play across leasing and supply chain financing to capture the vast but underpenetrated macro-opportunity in India.
Mumbai : Rent Alpha Private Limited (“Rent Alpha” or “The Company”) announced today that it has entered into agreements with Mizuho Leasing Company, Limited (“Mizuho Leasing”), one of the largest leasing companies listed on the Tokyo Stock Exchange. Pursuant to this agreement, Mizuho Leasing will acquire 51% stake from existing shareholders. This proposed investment will close after customary regulatory approvals.
Rent Alpha is currently around 70% owned by Bravia Capital a New York based investment firm, while the rest is owned by founders Jinesh Jain, Praveen Chauhan and other key members of management.
Founded in 2013, Rent Alpha and its 100% non-bank finance subsidiary Capsave Finance have risen to become one of India’s top equipment leasing companies by providing equipment rental solutions to corporate customers for IT equipment, office furniture, medical equipment and plant & machinery.
Capsave Finance has emerged amongst India’s fastest growing NBFCs with robust financials and strong portfolio. Capsave’s commitment to maintaining excellent asset quality is exemplified by its ratings upgrades over the last few years from ICRA BBB+ in 2018 to CRISIL A (stable) in 2022.
Rent Alpha has a rapidly expanding corporate and mid-enterprise client base including many of India’s leading corporates reflecting the strong trust and commitment these companies have in Rent Alpha. Rent Alpha is amongst the most diversified players across the equipment leasing ecosystem in India given that it leases a wide variety of equipment from IT, office infrastructure, plant & machinery, medical equipment to business jets. With the unique value proposition that Rent Alpha offers its clients through its NBFC subsidiary Capsave, it has managed to carve out a strong position for itself in the fast-growing supply chain finance segment.
With this acquisition, as a consolidated subsidiary of Mizuho Leasing, Rent Alpha Group’s financing capabilities will not only get a fillip but will also help it to rapidly scale its business. The management team of Rent Alpha will be able to leverage Mizuho Leasing’s extensive business experience to expand into a blue ocean of local Indian & MNC B2B companies.
Edelweiss Financial Services Limited were advisors to Bravia Capital and Rent Alpha on this Transaction. Mizuho Securities were advisors to Mizuho Leasing on this transaction.
Speaking on the development Shusaku Tsuhara, President and CEO Mizuho Leasing said “India’s rapid GDP growth is driving demand for financial services and creating an enormous potential market for leasing that has yet to be fully capitalized on. As a member of Mizuho Leasing, Rent Alpha will be able to leverage our global expertise and financial know-how to further grow and expand its business. At the same time, by partnering with Rent Alpha, Mizuho Leasing can confidently advance into the Indian leasing market as part of our global strategy to establish new networks and meet the needs of both local and international clients.”
Bharat Bhise President and CEO, Bravia Capital said “The focused approach that the company has had in building a strong and diverse book without compromising credit quality has been accepted by the market and made Rent Alpha one of the top equipment leasing companies in India. I am delighted to have Mizuho Leasing acquire a majority stake in the Company and I look forward to working alongside them on the board”
Jinesh Jain, Founder and CEO, Rent Alpha and Praveen Chauhan, Co-Founder said “We believe India is a vast market for equipment leasing and supply chain financing with very limited penetration. Having built a strong equipment leasing company over the last 9 years with the support of Bravia, we are thrilled to partner with Mizuho Leasing in our next phase of growth. Mizuho Leasing, with their global leasing experience and expertise, will help strengthen our position further and pave the way for long term sustainable growth in the equipment leasing and supply chain financing space.”
Satyen Shah, President and Head Investment Banking, Edelweiss Financial Services Limited said, “We believe the partnership between Mizuho Leasing and Rent Alpha is a clear “win win” for both companies. Rent Alpha, with the backing of Bravia Capital, has witnessed a sharp growth in the past 5 years and we believe the Indo-Japanese partnership with Mizuho Leasing will take it to newer heights. We at Edelweiss are delighted and honoured to have been associated with both Bravia Capital and Rent Alpha as their advisors in the formation of this partnership.”