The Poonawalla Group aims to raise $1 billion by the end of 2025 to grow its non-banking financial company, Poonawalla Fincorp. The money could come from a Qualified Institutional Placement or by inviting a financial investor. This will be a fresh investment, and they are not planning any secondary sales.
Serum Institute of India’s CEO, Adar Poonawalla, told Business Today that they plan to raise about $1 billion by the end of this year. They might do this through a QIP or by bringing in a financial investor. All of this will be a primary issue, meaning no existing shares will be sold. He explained that finance companies need a lot of money to grow.
Poonawalla Fincorp currently manages assets worth Rs. 35,000 crore. The company is borrowing four times its net worth. Poonawalla expects annual growth of 30%–40%. The new funds are meant to help support this growth while keeping the same level of borrowing.
While SII remains the main part of the group, it is slowly expanding into finance, insurance, and real estate. Poonawalla said, “We want to put all our capital into our NBFC to help it grow.”Poonawalla states that India’s changing economy is opening doors in many fields, including finance. “There are new opportunities as the country grows,” he explained.
Poonawalla Fincorp is expanding in digital lending, personal loans, and small business finance, riding on India’s growing credit market. If the $1 billion funding is approved, it will boost the company’s ability to lend. “Serum will stay our main focus,” Poonawalla noted. Still, financial services are becoming a bigger part of the group’s business.
Serum Institute of India, a vaccine maker led by Adar Poonawalla, bought Magma Fincorp in February 2021. The deal closed in July 2021. This move signaled SII’s entry into financial services through its holding company Rising Sun Holdings.
After the buyout, Magma Fincorp was renamed Poonawalla Fincorp in 2021. This step marked SII’s official push into the financial world. Rajesh Pherwani, founder of Valcreate Investment Managers, says the purchase was a smart move. It lets SII tap into India’s fast-growing financial sector.
The group had strong cash from vaccine sales, which helped it move into finance through an already listed company.