DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH invests in MAS Financial Services Ltd

Avendus Capital advised MAS Financial Services Ltd., an Indian non-banking financial company (NBFC), on raising growth capital in August 2012 from DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH. The undisclosed deal was aimed at expanding MAS Financial’s footprint in the NBFC sector, particularly targeting micro enterprises and MSMEs.

Deal Mechanics

MAS Financial Services, a leading NBFC in Gujarat, secured growth capital to support its expansion plans. The company aims to leverage the investment for broadening its presence within the NBFC segment, focusing on doorstep financing and loans for micro enterprises, small businesses, and affordable housing.

Strategic Rationale

The acquisition of capital by MAS Financial Services is a strategic move designed to fortify its market position in India’s rapidly growing retail NBFC sector. With over two decades of experience, the company has built a robust network spanning six states, which it plans to expand further with the new investment.

Financial Context

MAS Financial Services is focused on lending to micro and small businesses (MSMEs) in Gujarat, Maharashtra, and Rajasthan. The company provides financing for two-wheelers, commercial vehicles, and affordable housing projects. By securing additional capital from DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, MAS aims to scale its operations nationally.

Advisors

The financial advisory services were provided by Avendus Capital, which assisted MAS Financial in structuring the transaction and raising growth capital. No information was disclosed regarding legal or sell-side advisors.

Outlook

MAS Financial Services Ltd., under the guidance of Avendus Capital, now looks towards further market expansion with its recently secured capital from DEG. The company’s plan to create a national footprint underscores its ambition in the NBFC sector.