Bangalore, April 30, 2026: Axis Finance Limited (“AFL”), a non-banking financial company and wholly-owned subsidiary of Axis Bank, today announced an INR 750 crore primary capital raise from Kedaara Capital via a preferential issuance. This is in addition to the INR 1,500 crore primary raise via a rights issue that was approved by Axis Finance’s Board of Directors on April 17, 2026. This landmark capital raise is AFL’s largest primary raise till date; as well as its first ever raise from an external investor. Kedaara Capital’s primary infusion remains subject to customary regulatory approvals.
This transaction will significantly bolster the company’s capital base and propel its next phase of growth, further deepening credit penetration in India. With this primary infusion, AFL’s Tier 1 capital and capital adequacy (CRAR) will get enhanced. AFL is well-positioned to continue building a leading diversified lending platform at scale, addressing credit needs across the spectrum of Retail, MSME and Wholesale segments. With a strong presence across both secured and unsecured lending, Axis Finance aspires to be the preferred financier for enterprises in India, reinforcing its position as one of the leading MSME-focused lenders in the country.
Amitabh Chaudhry, MD & CEO, Axis Bank, said, “Over the years, Axis Finance has built a high-quality lending franchise anchored in strong governance and disciplined risk management. This capital infusion underscores our long-term commitment to strengthening Axis Finance as an integral part of Axis Group. It positions the company to pursue sustainable growth with prudence, while building a leading, diversified non-bank lending franchise in India. We are delighted to welcome Kedaara Capital, as an investor, as Axis Finance enters its next phase of growth.”
Sai Giridhar, MD & CEO, Axis Finance, said, “This significant boost to our capital base gives us the firepower to accelerate growth in a targeted and prudent way. Over the years, we have built Axis Finance on the pillars of rigorous risk management practices, and long-term client relationship. As India’s credit markets continue to deepen, the company’s well capitalised position will be pivotal in serving specialised credit needs of our customer segments responsibly. With Axis Bank’s continued, unwavering support and Kedaara Capital joining us as an investor, we are now even better positioned to build greater scale, invest further in people and technology, and continue delivering high-quality solutions to our customers.
Sunish Sharma, Founder and Managing Partner at Kedaara Capital, commented:
Axis Finance has consistently demonstrated excellence in execution, underpinned by robust governance and disciplined risk management—cornerstones of a high-quality lending institution. The company’s scaled and diversified presence across retail, MSME, and wholesale lending uniquely positions it to capitalize on the significant structural growth opportunities emerging in India’s credit market. We are excited to partner with the Axis Finance team and look forward to supporting the company as it embarks on its next phase of growth and value creation.”
Transaction Advisors to AFL for the preferential issuance
Financial Advisors: Morgan Stanley and Axis Capital
Legal: Cyril Amarchand Mangaldas
Transaction Advisors to Kedaara Capital for the preferential issuance
Legal: Veritas Legal
About Axis Bank
Axis Bank is one of the largest private sector banks in India. Axis Bank offers the entire spectrum of services to customer segments covering Large and Mid-Corporates, SME, Agriculture, and Retail Businesses. It has 6,275 domestic branches (including extension counters) and 12,796 ATMs and cash recyclers spread across the country as on 31st March 2026. The Bank’s Axis Virtual Centre is present across eight centres with 1,591 Virtual Relationship Managers as on 31st March 2026. The Axis Group includes Axis Mutual Fund, Axis Securities Ltd., Axis Finance, Axis Trustee, Axis Capital, A.TReDS Ltd., Freecharge, Axis Pension Fund and Axis Bank Foundation.
For more information, visit the website: https://www.axis.bank.in/
About Axis Finance
Axis Finance Limited (AFL) is a non-deposit accepting non-banking financial company (NBFC) registered with the Reserve Bank of India and categorized under the Middle Layer (NBFC-ML). AFL is a wholly-owned subsidiary of Axis Bank Limited.
Axis Finance provides Retail, MSME & Wholesale lending solutions to its customers. On the retail front, Axis Finance offers products including Loans Against Property, Business Loans, Personal Loans, Home Loans, and Micro LAP. On the MSME front, the products offered are Loans against property & Lease Rental Discounting. On the wholesale front, the products offered are Collateralized Loans, Corporate Financing, and Real Estate Financing.
For further information on Axis Finance Limited, please visit the website: https://www.axisfinance.in
About Kedaara Capital
Kedaara Capital is an operationally oriented private equity firm pursuing control and minority investment opportunities in India. Kedaara currently manages over $6 billion across market-leading businesses in financial services, consumer, pharma/healthcare, and technology/business services. Kedaara partners with best-in-class entrepreneurs and management teams and combines the strengths of its local team with the experience of its strategic partner, Clayton, Dubilier & Rice.
