April 25, 2026 | India:
In a major development in India’s financial sector, Axis Finance Limited (AFL) has announced a massive ₹2,250 crore primary capital raise, marking its largest fundraising to date. The capital infusion includes ₹1,500 crore via a rights issue backed by its parent Axis Bank and an additional ₹750 crore investment from private equity firm Kedaara Capital, making it AFL’s first-ever external investment.
The strategic move is set to significantly strengthen AFL’s capital base and financial resilience, enhancing its Tier 1 capital and overall capital adequacy. The investment remains subject to regulatory approvals but signals strong investor confidence in the company’s growth trajectory.
Growth Acceleration & Market Expansion
With this infusion, AFL aims to accelerate its expansion across Retail, MSME, and Wholesale lending segments, further deepening credit access in India’s rapidly evolving financial ecosystem. The company is positioning itself as a leading diversified lending platform, with a balanced mix of secured and unsecured offerings.
Leadership Speaks
Amitabh Chaudhry, MD & CEO of Axis Bank, said the move reinforces the group’s long-term commitment to AFL’s growth and will enable sustainable expansion backed by strong governance and risk management.
Sai Giridhar, MD & CEO of Axis Finance, stated that the capital boost will help the company scale responsibly, invest in technology and talent, and better serve evolving customer needs.
Sunish Sharma, Founder & Managing Partner at Kedaara Capital, highlighted the company’s strong execution, governance, and diversified lending presence as key factors behind the investment.
Big Picture
This deal underscores growing investor interest in India’s NBFC sector, especially firms with strong governance and scalable business models. With backing from both Axis Bank and Kedaara Capital, Axis Finance is now poised to enter its next phase of high growth and value creation.
