Mizuho Financial Group completed its acquisition of Indian investment bank Avendus Capital for approximately $700 million, marking the Japanese lender’s largest bet on India’s financial services sector.
The Tokyo-based bank secured up to 70% of Avendus after KKR agreed to sell its entire 60% stake alongside co-founder Ranu Vohra’s exit. Remaining founders Kaushal Aggarwal and Gaurav Deepak will continue running operations, though Mizuho will hold veto rights.
KKR, which invested around ¥15 billion ($95 million) in 2015, stands to earn a 3.5x return on what appears to be an aggressive valuation. Avendus reported ¥16.5 billion ($103 million) in revenue and ¥2.7 billion ($17 million) net profit for the nine months ending December 2024.
The deal positions Mizuho to capitalize on India’s IPO boom, though the investment banking sector remains notoriously cyclical. Carlyle and Nomura were among bidders that lost out to Mizuho, suggesting competition for quality Indian financial assets is intensifying.
The acquisition follows SMBC’s $1.6 billion purchase of a 20% Yes Bank stake in May, underscoring Japanese banks’ appetite for India exposure as domestic growth stagnates. However, integrating across cultures and regulatory frameworks presents execution risks that could test whether Mizuho’s premium pricing proves justified.
The transaction values Avendus at approximately 4.3 times trailing revenue, a multiple that assumes sustained growth in India’s volatile capital markets.
