Key Takeaways
- • Temasek Holdings will invest 25 billion rupees ($266.98 million) in Godrej Capital through an affiliate, according to Godrej Industries, valuing the financial services business at up to 280 billion rupees.
- • Godrej Industries will retain about 80% ownership of Godrej Capital following the transaction.
- • Godrej Capital targets a 1 trillion rupee AUM franchise by 2031, up from 350 billion rupees as of October 31, 2026.
- • The deal adds to a series of large Indian financial services transactions this year, including Fairfax Financial's 60.7% stake in IDBI Bank and Bank of America's joint venture to buy 49.9% of Jio Credit.
Summary
India's Godrej Industries said on Thursday that Temasek Holdings will invest 25 billion rupees ($266.98 million) in Godrej Capital through its affiliate. The investment values the financial services business at up to 280 billion rupees. Godrej Industries will retain about 80% ownership after the deal, according to the company's announcement as reported by Reuters.
Godrej Capital, founded in 2020, operates in more than 100 cities and, through its subsidiaries, provides home loans, loans against property, working capital loans, construction finance and personal loans to businesses and individuals across India. As of October 31, 2026, the company had assets under management of 350 billion rupees.
Pirojsha Godrej, Chairperson of Godrej Industries Group, said financial services is a major long-term growth focus for the group, and that its ambition is to build Godrej Capital into a 1 trillion rupee AUM franchise by 2031. The investment follows Godrej Industries' stated plan to list the financial services arm within the next five years.
The transaction is another sign of investor appetite for India's financial services sector. Temasek also holds a stake in ICICI Bank, the country's second-largest private-sector bank by market capitalisation. The deal joins several large sector transactions this year, including Fairfax Financial Holdings' acquisition of a 60.7% stake in IDBI Bank and a Bank of America-led joint venture buying a 49.9% stake in Jio Credit, the lending arm of Jio Financial Services.
Godrej Capital, founded in 2020, operates in more than 100 cities and, through its subsidiaries, provides home loans, loans against property, working capital loans, construction finance and personal loans to businesses and individuals across India. As of October 31, 2026, the company had assets under management of 350 billion rupees.
Pirojsha Godrej, Chairperson of Godrej Industries Group, said financial services is a major long-term growth focus for the group, and that its ambition is to build Godrej Capital into a 1 trillion rupee AUM franchise by 2031. The investment follows Godrej Industries' stated plan to list the financial services arm within the next five years.
The transaction is another sign of investor appetite for India's financial services sector. Temasek also holds a stake in ICICI Bank, the country's second-largest private-sector bank by market capitalisation. The deal joins several large sector transactions this year, including Fairfax Financial Holdings' acquisition of a 60.7% stake in IDBI Bank and a Bank of America-led joint venture buying a 49.9% stake in Jio Credit, the lending arm of Jio Financial Services.
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