Mizuho secures a 15 per cent stake in Kisetsu Saison

February 12, 2024 | 21:49
(0) user say
Mizuho Financial Group, one of Japan's top financial institutions, is set to acquire a 15 per cent share in India's Kisetsu Saison Finance, an online lending platform catering to individuals and small enterprises.
Mizuho secures a 15 per cent stake in Kisetsu Saison

According to Nikkei Asia, the transaction is valued at approximately $145 million, marking Mizuho's strategic move to integrate Kisetsu Saison's digital lending expertise and capitalise on the demand for financial services in India.

Kisetsu Saison Finance, a subsidiary of the prominent Japanese credit card company Credit Saison, initiated operations in Bengaluru in 2018 and has since expanded its footprint across India. The company boasts a loan portfolio of almost $670 million, serving as a testament to its growing influence in the digital lending space.

The move by Mizuho underscores a wider trend among Japanese financial entities seeking to penetrate the Indian market, where a significant portion of individuals and businesses remain underserved by traditional banking institutions. Digital lenders like Kisetsu Saison offer a viable alternative, leveraging online platforms to process loan applications swiftly and efficiently.

This development comes after other instances of Japanese banks pursuing opportunities in India, notably Sumitomo Mitsui Financial Group's acquisition of Fullerton India Credit in 2021, further evidencing the growing Japanese interest in India's financial services sector.

In late 2021, Mizuho invested $170 million to secure a 7.5 per cent interest in M-Service, the operator behind Vietnam's popular e-wallet app, Momo.

The Japanese banking giant is strategically poised to leverage the expansive retail network of the Vietnamese smartphone payment businesses.

Vietnam seeks Mizuho Bank's expertise Vietnam seeks Mizuho Bank's expertise

Prime Minister Pham Minh Chinh has proposed a collaboration with Japan's Mizuho Bank, one of the three mega banks in Japan, for the restructuring of Vietnam's underperforming banks.

Mizuho Bank to invest $170 million and acquire 7.5 per cent stake in M-Service Mizuho Bank to invest $170 million and acquire 7.5 per cent stake in M-Service

Japanese megabank Mizuho Bank is reported to invest around $170 million to acquire a 7.5 per cent stake in M-Service, the company behind e-wallet MoMo.

By Celine Luu

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional