Japan’s Mizuho enters Indian investment banking space with $523 million Avendus deal

Japan-based Mizuho Securities announced Wednesday that it will acquire a majority stake in KKR-backed Indian investment bank Avendus for 81 billion yen, or up to $523 million.

Redpoint Investments Pte Ltd., a subsidiary of US-based KKR, is selling its shares to Mizuho Securities, a subsidiary of Mizuho Financial Group, Japan’s third largest banking group. Avendus co-founder and vice chairman Ranu Vohra will also liquidate her shares as part of the deal.

What is included in the Mizuho-Avendus agreement?

The 81 billion yen deal will represent 61.6% to 78.3% of Avendus shares, which it plans to turn the financial services firm into a consolidated subsidiary, Mizuho Securities said in a statement.

The acquisition adds to the growing footprint of Japanese financial institutions in India; The fast-growing economy here makes India an attractive target for Japanese companies facing an aging and shrinking population at home.

Mizuho Securities, part of Mizuho Financial Group, Japan’s third-largest banking group, said it would buy 61.6% to 78.3% of Avendus shares and make the bank a consolidated subsidiary.

The company said it will continue to be led by the firm’s leadership team, along with Avendus founders Gaurav Deepak and Kaushal Aggarwal. This will ensure continuity of Avendus’ vision and brand direction as it plans to enter its next phase of growth.

“Mizuho reflects our values, vision and ambition to shape the future of financial services with purpose and impact. Together, we look forward to bringing innovative capital solutions to the Indian ecosystem and leveraging our complementary strengths to create deeper financial and economic flows between India and Japan,” said co-founder Gaurav Deepak.

Avendus will maintain its brand and identity while providing strategic access to Mizuho’s scale, corporate network and global reach.

Mizuho Group CEO Masahiro Kihara told analysts at a news conference that the acquisition will strengthen the Japanese company’s ability to work globally, including with US-based M&A advisor Greenhill, which it acquired in 2023.

“One of the great things about the Greenhill acquisition was better cross-regional collaboration. We thought India was a missing piece on the investment banking side,” Kihara said.

Mizuho is receiving an increasing number of requests from banking customers to expand into India, Mizuho CEO Masahiro Kihara said at a press conference in Tokyo. Reuters report.

Larger Japanese rival Sumitomo Mitsui Financial Group acquired 24.2% of Indian lender Yes Bank earlier this year.

KKR first invested in Avendus in 2016.