Rent Alpha Private Limited (Rent Alpha) announced 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, the statement said.
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.
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, the statement said.
Edelweiss Financial Services Limited were advisor to Bravia Capital and Rent Alpha on this Transaction. Mizuho Securities were advisor 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.”
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