Background & Opportunity:

1. Market Context: India’s private finance sector, and in our particular case, equipment-leasing, penetration remains a fraction of developed-market levels, driven by rapid digitization, infrastructure build-out, and supply-chain modernization.
2. Volatility Resilience: Corporate financing needs in India are counter-cyclical to public equity swings, offering stable deal flow even amid global market turbulence.
3. Regulatory Tailwinds: A maturing NBFC framework and open FDI policies reward sponsors with on-the-ground expertise and governance acumen.

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Investment Thesis:

1. Founder-Driven Growth: Deep entrepreneurial alignment accelerates execution in relationship-centric markets.
2. Credit Quality as Exit Lever: Rigorous underwriting underpins asset performance—and ultimately exit optionality.
3. Local & Global Partnership: Combining Bravia’s India know-how with global institutions enhances scale, credibility, and deal flow.
4. Tech-Enabled Operations: Digital portfolio tools and CRM systems create operational moats and transparent reporting.

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Bravia’s Role & Execution:

From the outset, Bravia Capital identified Rent Alpha in 2013, recognizing a founder team with deep sector expertise and the ambition to transform equipment leasing in India. Early on, we advised on corporate governance and board structures, and worked closely with the management team to launch Capsave Finance—Rent Alpha’s non-bank finance company arm—laying the operational and regulatory foundations for rapid scale.

As the platform grew, we insisted on rigorous underwriting standards, initially adopting ICRA-rated BBB+ criteria and guiding the company to achieve a CRISIL A (Stable) rating by 2022, which greatly enhanced its credibility and access to institutional capital. Concurrently, our operational support helped refine Rent Alpha’s product mix, expand into under-served mid-enterprise segments, and implement a tech-enabled portfolio management system that improved risk monitoring and customer service.

Finally, when it came time for exit, Bravia orchestrated a seamless cross-border process—coordinating multi-jurisdictional documentation, compliance, and stakeholder engagement alongside Edelweiss Financial Services in India and Mizuho Securities in Japan—to ensure a successful majority-stake sale to Mizuho Leasing.

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Transaction & Outcome:

Majority Stake Sale: Mizuho Leasing agreed to acquire an initial 51% stake in Rent Alpha at attractive multiples—validating Bravia’s value creation.

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Performance Metrics:

1. AUM growth: 5× increase between 2016–2024
2. Asset-quality: NPA ratio maintained below 1.2% throughout
3. Credit rating upgrade: from ICRA BBB+ (2018) to CRISIL A (2022)
4. Exit Optionality: Strong credit profile and scalable platform attracted a top-tier strategic buyer, delivering robust IRR for Bravia and co-investors.

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Key Takeaways for Investing in India:

1. Align with Founders: Seek entrepreneurs with domain expertise and shared vision—your best source of sustainable value creation.
2. Enforce Credit Rigor: Robust underwriting standards are non-negotiable; they underpin both operating performance and exit valuations.
3. Blend Local & Global Strengths: Leverage international partners for scale and branding, while deploying local teams for speed and regulatory fluency.
4. Embed Technology: Digital tools for underwriting, portfolio monitoring, and CRM foster operational transparency and investor confidence.
5. Plan for Exit: Early engagement with potential strategic acquirers ensures your platform is built to their tastes—maximizing sale opportunities.