The Poonawalla Group is planning to raise $1 billion by the end of 2025 to expand its non-banking financial company (NBFC), Poonawalla Fincorp.
The proposed capital raise may be through a qualified institutional placement (QIP) or by bringing in a financial investor. The funds will be a primary infusion—no secondary component is being considered.
“We are going to probably go for a $1 billion capital raise at the end of this year via a QIP or take a financial investor into the company—all primary, no secondary,” Adar Poonawalla, CEO of Serum Institute of India (SII) and Chairman of Poonawalla Fincorp told Business Today. “Finance companies need a lot of capital to grow,” he added.
Poonawalla Fincorp currently has assets under management (AUM) of ₹35,000 crore. The company, he said, is leveraged four times against its net worth. It expects to grow at a rate of 30-40% annually, and the capital raise is intended to support that level of expansion while maintaining existing leverage levels, Poonawalla said.
While the SII remains central to the group’s operations, it is gradually increasing its involvement in financial services, insurance, and real estate. “We want to take all our capital and put it in our NBFC to grow that,” Poonawalla said.
In March, Adar Poonawalla sold his stake in Magma Insurance to Baba Ramdev-led Patanjali Ayurved and the DS Group for ₹4,500 crore. The deal altered the ownership structure of the company, with Patanjali and DS Group together acquiring a 98% stake.
The transaction was executed through Sanoti Properties, where Poonawalla held a 90% stake, making it a key vehicle in the deal. His exit from Magma Insurance reflects a shift in strategic priorities, as he reallocates resources from insurance towards expanding his financial services and lending businesses. “We want to focus on our NBFC business,” he said.
Real estate currently makes up about 10% of group activity. Poonawalla said they are approaching the sector with caution and partnering selectively in key locations. The group also owns the Ritz-Carlton hotel in Pune, and may consider limited expansion in hospitality.
According to Poonawalla, the broader direction of India’s economic growth is opening up opportunities across sectors, including finance. “With the country growing in the direction that it is, there’s opportunity,” he said.
Poonawalla Fincorp has been expanding its presence in digital lending, personal loans, and SME finance, supported by a growing credit market in India. If finalised, the $1 billion raise will be used to strengthen the NBFC’s lending capacity. “Serum will remain our primary focus,” Poonawalla said. However, financial services are increasingly becoming an important part of the group’s portfolio.
