Axis Finance Raises Primary Capital
FinTech BizNews Service
Mumbai, April 25, 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.
Sai Giridhar, MD & CEO, Axis Finance
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
