Mizuho Makes Bold Play for India with $700 Million Avendus Buy

Mizuho Makes Bold Play for India with $700 Million Avendus Buy

Mizuho, a top-tier Japanese bank, makes a significant foray into India’s financial landscape by acquiring a majority stake in Avendus Capital from KKR, signaling a pivotal shift in the country’s investment banking space.

The Deal: Details and Structure
After months of negotiations and a competitive bidding process, Mizuho and KKR, along with Avendus’s senior leadership, finalized the acquisition terms in early June 2025. The deal values Avendus Capital at approximately ₹6,000 crore ($700 million), with KKR selling its entire 60% stake, alongside early investors, some high-net-worth individuals, and co-founder Ranu Vohra. The remaining founders, Kaushal Aggarwal and Gaurav Deepak, will retain their stakes and continue to manage the company, ensuring operational continuity, though Mizuho will wield veto rights.
Mizuho CEO Mr. Masahiro Kihara is going to visit India for high-level discussions and to formally announce the acquisition. The acquisition will give Mizuho a controlling interest of up to 70% in Avendus, making it a major force in India’s financial services industry.

Avendus Capital: A Homegrown Success Story
Founded in 1999 by three friends—Ranu Vohra, Kaushal Aggarwal, and Gaurav Deepak—Avendus Capital has grown into one of India’s most prominent investment banks. The company offers services in investment banking, credit financing, institutional equities, wealth advisory, and asset management, with operations in ten Indian cities and international offices in the US and Singapore.
Avendus’s acquisition of Spark in 2022 expanded its reach into institutional equities, further diversifying its offeringsIn the nine-month period ending December 2024, Avendus generated ₹1,035 crore in consolidated revenue and posted a profit after tax of ₹170 crore. Investment banking remained the primary growth driver, accounting for the majority of its pre-tax earnings. Its strong financial performance has positioned it as one of the most sought-after dealmakers in India.

KKR’s Exit and Returns
Global investment firm KKR made its initial entry into Avendus in 2015, securing a majority stake with an investment estimated between ₹950 and ₹1,000 crore. The transaction also signifies the exit of a number of initial investors and smaller shareholders, among them Gaja Capital.

Strategic Context: Why Mizuho, Why Now?
Mizuho’s acquisition of Avendus comes amid a broader trend of Japanese financial institutions deepening their presence in India. Just last month, Sumitomo Mitsui Banking Corporation (SMBC) picked up a strategic stake in Yes Bank, and Mizuho itself has recently invested in Kisetsu Saison Finance. Having established five branches in India and committed $500 million to its local operations, Mizuho is making a strong play for long-term growth in the country’s financial sector.
The deal also reflects Mizuho’s global ambitions. Mizuho has been expanding its international presence through acquisitions, notably of Greenhill & Co. and an Indian fintech startup in 2024. The alliance with Avendus provides the Japanese bank with a gateway to a fast-growing market and a platform backed by strong local expertise and established networks.

Competitive Bidding and Advisory
The Avendus stake sale attracted significant interest from global private equity and financial players, including Carlyle, TPG Capital, TA Associates, and even Nomura, which was originally hired to manage the process before Rothschild took over as advisor. Ultimately, Mizuho outbid Carlyle, with insiders citing Mizuho’s strategic fit and cross-border transaction capabilities as key differentiators.

What’s Next for Avendus?
Post-acquisition, Avendus will continue to operate under the leadership of its remaining founders, with the support and oversight of Mizuho. The Japanese bank’s global reach and capital strength are expected to enhance Avendus’s ability to serve clients, especially in cross-border M&A and capital markets.
The deal also positions Avendus to further expand its wealth management, alternative asset management, and institutional equities businesses, leveraging Mizuho’s international network and financial muscle.

Conclusion
Mizuho’s $700 million acquisition of Avendus Capital is a watershed moment for both companies and for India’s financial services landscape. It underscores the growing appeal of Indian financial assets to global investors and marks a new era of cross-border collaboration. As Mizuho integrates Avendus into its global operations, the Indian investment bank is poised for its next phase of growth, backed by one of the world’s largest financial groups.

The image added is for representation purposes only